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Industrial production continued to climb in the third quarter, but at a slightly slower pace compared to the previous quarter. Some softening was also expected in manufacturing. The offshore sector of the engineering industry has seen the strongest increase. On the other hand, growth in the export-oriented industries surged throughout the second and third quarters. This was particularly true of the industrial chemical and metal industries, although wood processing is also enjoying strong growth. Overall utilization of capacity in the third quarter was a seasonally adjusted and rounded-off 83.2 percent, i.e. the same as in the second quarter. The upswing in output will probably continue in the fourth quarter, with offshore-oriented industries looking for a stronger upswing than other sectors.
Amid higher production and high activity Norwegian industrial leaders take a positive view of fourth quarter 1997, Statistics Norway's general business tendency survey shows. Large orders and better export prices are other factors entering into the equation.
Large demand and backlog of orders
Demand from the home market is an important factor behind production trends. Growth in new orders from the domestic market increased somewhat in the third quarter, seasonally adjusted and rounded-off, with consumer products and intermediate goods-producing industries leading the way. The trend must be seen in light of the fact that producer prices have improved in a number of industries, and for that reason the increase represents only a partial increase in volume. Influenced by prices of major Norwegian export products, demand from the export markets has improved throughout 1997. Overall industrial demand in the third quarter was the same level as in the second quarter. Industries such as wood processing, industrial chemicals and metals all report rather strong growth.
Weekly Bulletin issue no. 44, 1997