Business tendency survey for manufacturing, mining and quarrying, Q2 2011

According to the business tendency survey, the Norwegian manufacturing industry experienced further growth in total output in the second quarter of 2011, and there was a rise in employment. A higher total stock of orders due to an increase in new orders from domestic markets explains these results. Market prices continued to improve but the growth in export prices showed signs of levelling out. A similar development was recorded for new orders from export markets.

The number of working months covered by the current stock of orders was significantly higher than in the second quarter of 2010, and some sectors report of shortage of qualified labour. However, poor demand and fierce competition were still major bottlenecks in manufacturing. Average capacity utilisation is estimated at 80.3 per cent. International comparisons of average capacity utilisation are available from EUROSTAT .

Prospects of further growth in total output

The general short-term outlook (Q3 2011) is considered as positive. Prospects of improved conditions in domestic and export markets support this result. The industrial confidence indicator is estimated at 10 (seasonally-adjusted net figure). International comparisons of the industrial confidence indicator are available from EUROSTAT (EU), the Swedish National Institute of Economic Research (Sweden) and Statistics Denmark .

Decline in new orders from export markets

Sectors producing intermediate goods (wood and wood products, paper and paper products, non-metallic mineral products, basic metals etc.) experienced weaker growth in output and employment. A decline in new orders from export markets explains this development. However, market prices continued to grow, and there was a rise in new orders from domestic markets. Average capacity utilisation is estimated at 81.6 per cent. This is below the historic average for the industries in question.

The general short-term outlook (Q3 2011) is considered as positive, and the investments seem to be growing. Prospects of a further increase in output, new orders and market prices support these results.

Shortage of qualified labour

Sectors producing capital goods (machinery and equipment, ships, boats and oil platforms etc.) experienced growth in output and a further rise in employment. A higher total stock of orders due to an increase in new orders from domestic and export markets explain these results. Export prices continued to fall, while home market prices were more or less unchanged. Average capacity utilisation is estimated at 82.7 per cent in the second quarter. This is close to the historic average for the industries in question.

The general short-term outlook (Q3 2011) is considered as positive and the investments seem to be growing. Prospects of a further rise in output, employment and total stock of orders support these results. Shortage of qualified labour was a growing concern among the respondents.

Improved demand in domestic markets

Sectors producing consumer goods (food products, printing and reproduction, basic pharmaceuticals, furniture etc.) experienced higher output and improved market prices. The demand from domestic markets continued to grow, while the demand from export markets was more or less unchanged. Average capacity utilisation is estimated at 76.6 per cent in the second quarter.

The general short-term outlook (Q3 2011) is considered as positive. Prospects of further growth in the demand from domestic markets and market prices support this view.