Index of industrial production, September 2016

The index level for Norwegian manufacturing in the third quarter of 2016 amounted to 112.3 (2005= 100). The corresponding figure for the second quarter was 114.2. 

Three-month change: petroleum-related manufacturing contributes most to the decline

According to seasonally-adjusted figures, the manufacturing output saw a decrease of 1.7 per cent in the third quarter of 2016 compared with the second quarter. Petroleum-related manufacturing saw a total decline of 6.3 per cent in this period, which still is the main contributor to the falling manufacturing output. The following industries within this analytical grouping had the largest output decline in the third quarter: 

• machinery and equipment :-8.9 per cent
• ships, boats and oil platforms: -8.8 per cent
• repair and installation of machinery: -8.6 per cent 

The same tendencies for Norwegian manufacturing output can also be found in the business tendency survey for the third quarter, where the above mentioned industries are also pointed out as the main contributors for the falling production level in Norwegian manufacturing this quarter. These industries are still affected by low investment activity in the oil and gas sector. 

On the other hand, a strong growth in the industry grouping refined petroleum, chemicals and pharmaceutical products partially dampened the overall decrease in the manufacturing output. This is mainly due to a high production level of pharmaceutical products. 

Monthly change: increase in manufacturing output from August to September 2016

According to seasonally-adjusted figures, the manufacturing output saw an increase of 2.2 per cent from August to September 2016. This increase follows a strong output drop from July to August. Several industries had a production increase from August to September, but the largest contributions to the total output growth came from machinery and equipment, ships, boats and oil platforms, as well as computer and electrical equipment.

On the other hand, the total output increase was curbed by low production in the industry grouping refined petroleum, chemicals and pharmaceutical products and food and food products. The decline in refined petroleum, chemicals and pharmaceutical products was due to planned maintenance shutdown among some leading suppliers.

Twelve-month change: notable drop in Norway, growth in the Euro area in August

According to calendar-adjusted figures, output in Norwegian manufacturing saw a notable decline of 7.5 per cent from August 2015 to August 2016. Low activity within machinery and equipment and repair and installation of machinery contributed most to the total output decline. Estimated figures from Eurostat, the EU`s statistical office, indicate that output in manufacturing in the euro area, increased by 2.0 per cent in the same period. 

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

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply fell 3.9 per cent in the third quarter of 2016 compared to the previous quarter. Extraction of crude petroleum increased 1.1 per cent, while extraction of natural gas saw a strong decline of 14.1 per cent. For more details about oil and gas extraction for September 2016, see the press release from The Norwegian Petroleum Directorate. 

Support activities for petroleum and natural gas extraction had a production decrease of 3.2 per cent. Seasonally-adjusted figures also show that production within Norwegian electricity supply fell 3.9 per cent in the same period, while mining and quarrying rose 12.3 per cent.