Moderate fall in manufacturing output during summer

The index level for Norwegian manufacturing from June to August 2017 amounted to 113.7 (2005=100). The corresponding figure for the previous three-month period was 114.0. Smoothed seasonally-adjusted figures now indicate a falling trend for the last 3 months (see figure 1).

Three-month change: petroleum-related manufacturing pulls down manufacturing output

According to seasonally-adjusted figures, manufacturing output saw a minor decrease of 0.3 per cent from June to August 2017 compared to the previous three-month period. The analytical grouping petroleum-related manufacturing contributed most to the overall decline with a decrease of 3.3 per cent. The fall is particularly related to low activity within machinery and equipment as well as ships, boats and oil platforms. For the latter industry, the decline is partly due to completion of several projects. For more details about how petroleum-related manufacturing affects the overall development in manufacturing, see the article Norwegian Manufacturing 2016 – a tough year for manufacturing.

The overall manufacturing decline is however dampened by high production within the industry grouping rubber, plastic and mineral products, which increased 4.3 per cent in the same period. This growth is particularly related to a high level of activity in the Norwegian construction sector, where this industry grouping is a supplier of intermediate goods.

Monthly change: significant downturn from July to August 2017

According to seasonally-adjusted figures, manufacturing output saw a significant downturn of 5.7 per cent from July to August 2017. The fall is particularly related to low production in food products, and in ships, boats and oil platforms. For food products, the decline is partly linked to low production within processing and preserving of fish.

In addition to a lower level of activity, more vacation was taken in August 2017 compared to the previous years, which can partially explain the significant reduction from July to August.

Twelve-month change: strong growth in the Euro area in July 2017, increase also in Norway

According to calendar-adjusted figures, Norwegian manufacturing output saw a 1.3 per cent increase from July 2016 to July 2017. The industry grouping refined petroleum, chemicals and pharmaceuticals contributed most to this growth with an increase of 14.8 per cent. Estimated figures from Eurostat, the EU’s statistical office, indicate that output in manufacturing in the Euro area increased strongly by 3.4 per cent in the same period.

Three-month change: growth in total industrial production (PII)

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply, had an increase of 1.0 per cent from June to August 2017 compared to the previous three-month period. The growth is particularly due to a strong increase of 9.8 per cent within extraction of natural gas. Extraction of crude petroleum, on the other hand, fell by 3.8 per cent. For more details about oil and gas extraction for August 2017, see the press release from The Norwegian Petroleum Directorate.

Within support activities for petroleum and natural gas extraction, output had a solid increase equivalent to 3.5 per cent from June to August 2017 compared to the previous three-month period. Suppliers within this industry are strongly affected by the investment level in the Norwegian oil and gas industry, and the increase can be related to some major projects within the category field development.

In the same period, mining and quarrying saw an increase of 3.5 per cent, while production within Norwegian electricity supply went up by 3.1 per cent.