Growth in manufacturing output continues

The index level for Norwegian manufacturing amounted to 118.3 (2005=100) in the period November 2018-January 2019. This is the highest index level registered since the second quarter of 2015. The corresponding figure for the previous three-month period was 116.8. The long-term trend now shows growth since early 2018 (see figure 1).

Three-month change: strong activity within petroleum-related manufacturing

According to seasonally-adjusted figures, manufacturing output had a solid increase of 1.3 per cent in the period November 2018-January 2019 compared to the previous three-month period. The growth can particularly be related to an increase of more than 10 per cent within the building of ships, boats and oil platforms industry. High activity within building of oil platforms especially contributed to the increase. Additionally, fabricated metal products together with repair and installation of machinery also contributed positively to the overall growth. Petroleum-related manufacturing saw a total increase of as much as 4.8 per cent.

On the other hand, the overall output increase was dampened by a production fall in basic chemicals. The decline is due to shutdowns among some leading producers.

Monthly change: manufacturing output from December to January unchanged

According to seasonally-adjusted figures, overall manufacturing output was almost unchanged from December 2018 to January 2019, with a marginal decline of 0.2 per cent. However, there were considerable differences between the industries. The industry grouping refined petroleum, chemicals and pharmaceuticals together with paper and paper products saw a clear decline. On the opposite side, food products and building of ships, boats and oil platforms had a notable increase.

Clear decline in the Euro area, increase in Norway in December 2018

Estimated figures from Eurostat, the EU’s statistical office, indicate that output in manufacturing in the Euro area had a clear decrease of 1 per cent from November to December 2018. In the same period, Norwegian manufacturing went up 0.6 per cent.

Two of our neighbouring countries, Sweden and Denmark, both saw a clear production increase in this period.

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

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply saw a clear decrease of 2.1 per cent from November 2018 to January 2019 compared with the previous three-month period. Extraction of crude petroleum went up 0.6 per cent, while extraction of natural gas saw a notable drop of 8.2 per cent. For more details about oil and gas extraction for January 2019, see the press release from The Norwegian Petroleum Directorate.

Within support activities for petroleum and natural gas extraction, there was a strong output increase equivalent to 4.2 per cent compared to the last three- month period. The growth is partly related to an investment increase in the Norwegian oil and gas sector.

Mining and quarrying also saw a production growth of 1.1 per cent in the same period, while output within Norwegian electricity supply went down 4.5 per cent.