Output growth in manufacturing in the second quarter of 2018

The index level for Norwegian manufacturing in the second quarter of 2018 amounted to 114.9 (2005=100). The corresponding figure for the previous quarter was 114.0.

Three-month change: increase in food products and beverages

According to seasonally-adjusted figures, manufacturing output saw an increase of 0.8 per cent in the second quarter of 2018 compared to the previous quarter. The growth is particularly related to high activity within food products and beverages. Strong output level within manufacture of meat and meat products is the main reason behind this development. In addition, manufacture of dairy products and ice cream, as well as manufacture of soft drinks and mineral waters saw high production levels, due to high temperatures and stable summer weather.

The industry grouping refined petroleum, chemicals and pharmaceuticals contributed also positively in the second quarter due to high production of pharmaceutical products. On the other hand, the overall output increase was somewhat dampened by lower production within industries such as rubber, plastic and mineral products, and repair and installation of machinery.

Monthly change: unchanged output from May to June

According to seasonally-adjusted figures, total manufacturing output was unchanged from May to June 2018. Industries within the analytical grouping petroleum-related manufacturing such as fabricated metal products and ships, boats and oil platforms saw a production increase in this period. On the other hand, basic chemicals together with rubber, plastic and mineral products had an output fall.

Clear output growth in the Euro area in May 2018

Estimated figures from Eurostat, the EU’s statistical office, indicate that output in manufacturing in the Euro area had a clear output growth from April to May 2018 equivalent to 1.4 per cent. In the same period, manufacturing output in Norway decreased by 0.6 per cent. 

In two of our neighboring countries, Sweden and Denmark, the development in manufacturing output pointed in opposite directions from to April to May 2018. Sweden saw an increase of 1.8 per cent, while Denmark had an output fall of 1.5 per cent.

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

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply decreased by 1.1 per cent in the second quarter of 2018 compared with the previous quarter. Extraction of crude petroleum saw a decline of 4.8 per cent, while extraction of natural gas increased by 4.1 per cent. For more details about oil and gas extraction for June 2018, 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 4.8 per cent in the second quarter of 2018 compared with previous quarter. This positive development is among other factors due to high activity related to assembly work on new platforms.

In the same period, mining and quarrying decreased 2.2 per cent, while production within Norwegian electricity supply had a severe drop of 12.9 per cent. The drop must be seen in context with high temperatures and low level of rainfall during the second quarter of 2018.