Moderate increase in manufacturing output in October

The index level for Norwegian manufacturing in the period August-October 2020 amounted to 115.9 (2005=100). The corresponding figure for the previous three-month period was 111.2. Figure 1 shows that the output in manufacturing fell severely from March to May, and then increased again until August. After a small decline in September, manufacturing output increased in October. The activity level is however much lower than it was in the beginning of 2020.

Monthly change: Small increase in manufacturing in October

According to seasonally-adjusted figures, manufacturing output had a small increase of 0.6 per cent from September to October. The industry grouping computer and electrical equipment contributed most to this growth, with an increase of 8.6 per cent. Food products saw an increase of 2.2 per cent and it was processing and preservation of fish that contributed most to this growth.

On the other hand, the industry grouping refined petroleum, chemicals and pharmaceuticals contributed the most to dampen the overall increase, with a decline of 2.6 per cent.

Three-month change: Strong growth in manufacturing output

According to seasonally-adjusted figures, manufacturing output saw an increase of 4.2 per cent in the period August-October 2020 compared with the previous three-month period. Ships, boats and oil platforms contributed most to the overall output growth, with an increase of 17 per cent. The industry grouping furniture and manufacturing n.e.c. also experienced a strong output growth in the same period. Several labour-intensive industries experienced growth this period. The increase can be explained by improved routines for managing infection control measures and increased availability of foreign labour, after the strong output decline in the early phase of the Corona pandemic.

Figure 2 shows the output development of the analytical grouping petroleum-related manufacturing on a three-month basis. The indicator had a strong growth of 6.7 per cent in the period August-October, compared with the last three-month period.

Monthly change: Marginal output decline in the Euro area in September 2020

Estimated figures from Eurostat, the EU’s statistical office, indicate that manufacturing output in the Euro area had a marginal decline of 0.3 per cent from August to September 2020. The output development had started to level off in August, after strong growth from May to July. This development continued in September. Compared with September 2019, the output level in September 2020 was however still low among countries in the Euro area.

In September, Norwegian manufacturing production had a small decline of 0.5 per cent. Sweden saw an output decline of 1.3 per cent, while Denmark had an output increase of 2 per cent.

For more information on the development in European manufacturing sector during the Corona pandemic, see this article from Eurostat.

Three-month change: Unchanged total production index

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply was unchanged in the period August-October 2020, compared with the last three-month period. Extraction of crude petroleum had a decline of 3.4 per cent, while extraction of natural gas increased with 1.5 per cent. For more details about oil and gas extraction in this period, see the press release from The Norwegian Petroleum Directorate.

Within support activities for petroleum and natural gas extraction, there was a solid output growth of 7.2 per cent in the period August-October, compared with the previous three-month period.

In the same period, mining and quarrying saw a marginal increase of 0.2 per cent. Norwegian electricity supply decreased by 1.3 per cent.