Fewer new orders in manufacturing

New orders for manufacturing dropped off 35 percent from the third to the fourth quarter last year, measured as yearly growth in the trend series. This development is due to fewer new domestic orders and lower demand from abroad for most industries. Domestic demand and demand from abroad decreased by 44 and 30 per cent respectively.

In the fourth quarter of 1998 the index of new orders received was recorded at its lowest level since the third quarter of 1996. Important industries, such as basic metals, oil platforms, and machinery and equipment have suffered major declines in new orders from the third to the fourth quarter. There have been declines in orders from both the domestic market and from abroad. Basic chemicals was the only industry with an increase in new orders, which amounted to 24 per cent.

Total unfilled orders have declined by 24 per cent compared with the third quarter. Unfilled orders for exports are almost unchanged, while the unfilled orders for the domestic market have declined by 33 per cent. In particular, machinery and equipment, transport equipment and oil platforms have had large reductions in unfilled orders.

Oil platforms and modules

Oil platforms and modules have had the most pronounced negative trend, with a reduction in new orders of 88 percent from the third to the fourth quarter. New orders are still a little above the level for the same quarter in 1997. The industry had very high new orders in the preceding quarters last year. The decline from the third to the fourth quarter may be due to the uncommonly low price of oil with the resultant low willingness to invest in the oil industry.

Machinery and equipment and transport equipment

Machinery and equipment underwent an especially sharp decline of 25 per cent in its new domestic orders, but its exports were also declining. Total unfilled orders have declined sharply from the third to the fourth quarter. Transport equipment has had an increase in new domestic orders from the third to the fourth quarter, but still lies considerably below the record high level for the same quarter in 1997. International uncertainty contributed to a weaker demand in the industry throughout the preceding year. At the same time signals of a possible increase in shipbuilding subsidies may have led to a postponement of new orders in 1998 and thus further intensified the negative trend.

New statistics
Statistics on new orders. Manufacturing, fourth quarter 1998.
The statistics are published quarterly in the Weekly Bulletin of Statistics. For more information contact: Hilde.Hagen@ssb.no, tel.: +47 21 09 47 45, or Jacob.A.Osnes@ssb.no, tel.: +47 21 09 47 24.

Weekly Bulletin issue no. 8, 1999