The first nine months of 2022 have been positive for companies in the industry and services sector. According to the results of the Economic Survey on Industrial Enterprises and Services, published by the Bank of Italy, companies with at least 20 employees show an increase in turnover until September 2022, both in the domestic and foreign markets.
Despite the increase in production input costs, the company’s profitability remained high. The share of electricity and gas expenditure in total purchases of goods and services grew but remained below 10% for more than two thirds of companies. The increases were most significant in the industry, where about three out of four companies also reported significant difficulties related to increases in non-energy inputs; the main response to increases was a rise in sales prices.
The growth in hours worked has continued and companies are predicting an increase in the number of employees for the whole of 2022.
The expansion of sales and hours worked would ease over the next six months.
The investment plans formulated at the end of last year would be implemented. For 2023, companies are predicting an increase in investment despite widespread assessments of worsening debt conditions.
In the construction sector, production continued to expand, despite increases in the price of production inputs. The growth in the sector was reinforced by measures to support the restructuring of the housing stock. Employment and profitability have benefited. Production expectations point to further expansion in the coming year.