Output decline in manufacturing in the first quarter of 2018

The index level for Norwegian manufacturing in the first quarter of 2018 amounted to 113.8 (2005=100). The corresponding figure for the previous quarter was 115.1. Smoothed seasonally-adjusted figures indicate a decreasing trend for the last three months (see figure 1).

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

According to seasonally-adjusted figures, manufacturing output saw a decrease of 1.1 per cent in the first quarter of 2018 compared to the previous quarter. The decline is particularly due to low production within food products, as well as in the industry grouping refined petroleum, chemicals and pharmaceuticals.

On the other hand, ships, boats and oil platforms saw a clear production increase, and contributed the most to dampen the overall output decline. The industry had a strong output growth of 6.4 per cent due to high activity within both shipbuilding and building of platforms. The analytical grouping petroleum-related manufacturing had an overall growth of 1.0 per cent in the first quarter of 2018 compared with the previous quarter (see figure 3).

Monthly change: minor changes from February to March 2018

According to seasonally-adjusted figures, manufacturing output was almost unchanged from February to March 2018, with a slight decrease of 0.1 per cent. Petroleum-related industries such as machinery and equipment and ships, boats and oil platforms saw an increase in this period. On the other hand, the industry grouping refined petroleum, chemicals and pharmaceuticals together with wood and wood products had an output decline.

Twelve-month change: output growth in the Euro area, minor changes in Norway in February 2018

Estimated figures from Eurostat, the EU’s statistical office, indicate that output in manufacturing in the Euro area increased by 2.5 per cent from February 2017 to February 2018. According to calendar-adjusted figures, Norwegian manufacturing output was almost unchanged in the same period with a minor increase of 0.2 per cent. Ships, boats and oil platforms saw a strong increase, while the industry grouping refined petroleum, chemicals and pharmaceuticals together with food products had a clear output fall.

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

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply increased by 2.7 per cent in the first quarter of 2018 compared with the previous quarter. Extraction of crude petroleum saw a clear increase of 3.1 per cent, while extraction of natural gas was more or less unchanged. For more details about oil and gas extraction for March 2018, see the press release from The Norwegian Petroleum Directorate.

Within support activities for petroleum and natural gas extraction, output saw a decrease of 1.1 per cent in the first quarter of 2018 compared with the previous quarter. In the same period, mining and quarrying saw a clear output growth of 6.7 per cent, while production within Norwegian electricity supply went up by 2.0 per cent.