Index of industrial production, January 2000

Due to a moderate recovery in engineering industries the rate of change is less negative in January this year than in the last quarter of 1999. Following successive months of negative rates of change the offshore industries have received some larger new orders. At the same time the current activity in part of the oil platform and modules sector has been extended somewhat in time. The size of new orders in the coming quarters for the engineering industries and the investment activities in the offshore sector will have a large impact on the outlook for production during this year.

Positive signs in a few manufacturing sectors

Throughout 1999 increased demand in the export markets has contributed to growth in production for the basic metal industries and the trend seems to continue in 2000. The production of aluminum rose by 5 per cent in January compared with the same month last year. There has also been a growth in production in rubber and plastics industry and in non-metallic mineral industry.

The overall index

Turning attention to seasonally adjusted figures for oil and gas production, we see a decline of about 4 percent in January compared to December 1999. Energy goods output (oil and gas including electricity) in January is about 3 per cent lower than a month before. To a large extent this also explains the downward trend in the overall index.