Minor output decline in manufacturing

The index level for Norwegian manufacturing in the first quarter of 2019 amounted to 117.5 (2005=100). The corresponding figure for the previous quarter was 118. Smoothed seasonally-adjusted figures indicate a slightly decreasing trend for the last three months (see figure 1).

 

Three-month change: growth in petroleum-related manufacturing, fall in other manufacturing branches

According to seasonally-adjusted figures, manufacturing output was more or less unchanged from the fourth quarter of 2018 to the first quarter of 2019 with a minor decrease of 0.4 per cent. Industries such as fabricated metal products and ships, boats and oil platforms saw a clear production growth in this period. Consequently, petroleum-related manufacturing saw a total increase of 3.2 per cent (see figure 2).  

On the other hand, the industry grouping refined petroleum, chemicals and pharmaceutical products contributed the most to pull the overall manufacturing output down. The downturn is related to shutdown for maintenance work among several leading producers. In addition, food products also had a clear fall due to low production within processing and preserving of fish.

Monthly change: decline in manufacturing output from February to March 2019

According to seasonally-adjusted figures, overall manufacturing output had a decrease of 0.8 per cent from February to March 2019. The decline is particularly due to low production in food products. In addition, basic metals together with the industry grouping computer and electrical equipment contributed also negatively. 

Small changes both in the Euro area and in Norway in February 2019

Estimated figures from Eurostat, the EU’s statistical office, indicate that output in manufacturing in the Euro area had a marginal increase of 0.3 per cent from January to February 2019. In the same period, Norwegian manufacturing output saw a minor fall of 0.3 per cent.

Manufacturing output in Sweden saw a marginal increase in the same period, while there was a clear decline in Denmark. 

Three-month change: clear drop 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 drop of as much as 4.9 per cent in the first quarter of 2019 compared with the previous quarter. Extraction of crude petroleum decreased strongly with 5.6 per cent, while extraction of natural gas had a decline of 1.9 per cent. For more details about oil and gas extraction for March 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 5.4 per cent in the first quarter of 2019 compared with the previous quarter. 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 3.2 per cent in the same period, while output within Norwegian electricity supply went down strongly with 12 per cent. The decline in electricity supply must be seen in context with a relatively warm winter.