MILAN — Mills exhibiting at the Filo yarn fair were looking to rebound after a drop-off in sales last year.

Italy's yarn industry is still in a "holding pattern," according to SMI-ATI, the Italian federation of fashion, clothing and textile industries, with 2007 sales slipping 1.8 percent to 3.4 billion euros, or $4.66 billion at average exchange, for the year.

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