Decline in production continues
Production in Norwegian manufacturing declined by 1.1 per cent in the period December 2015-February 2016 compared with the previous three-month period, according to seasonally-adjusted figures. Low production within oil and gas-related industries still explains much of the decline. From January to February 2016 the manufacturing production increased by 0.7 per cent.
|Seasonally adjusted||Calendar adjusted1||Weights2|
|Monthly change||Three-month change||Twelve-month change|
|February 2016 / January 2016||December 2015 - February 2016 / September 2015 - November 2015||February 2016 / February 2015|
|1Adjusted for working-days and for public holidays in Norway.|
|2The weights are updated annually, and are valid for the entire year.|
|Extraction, mining, manufacturing and elec||0.4||-2.3||-1.8||100.0|
|Extraction and related services||0.0||-3.7||-0.8||71.4|
|Mining and quarrying||7.6||-9.6||-15.1||0.5|
|Food, beverage and tobacco||-0.4||1.2||0.9||4.7|
|Refined petro., chemicals, pharmac.||1.1||5.3||5.9||2.4|
|Machinery and equipment||-5.1||-4.9||-18.6||3.0|
|Ships, boats and oil platforms||-1.2||-2.0||-19.6||1.8|
|Electricity, gas and steam||0.7||3.0||7.9||4.9|
The index level for Norwegian manufacturing in the period December 2015-February 2016 amounted to 115.2 (2005= 100). The corresponding figure for the previous three-month period was 116.5.
Three-month change: fall in machinery and equipment and in repair and installation of machinery
According to seasonally-adjusted figures, the manufacturing output saw a decrease of 1.1 per cent in the period December 2015-February 2016 compared with the previous three-month period. The downturn is still strongly related to low production within oil and gas-related industries and the lower investment activity in the Norwegian oil and gas sector. Machinery and equipment together with repair and installation of machinery contributes the most to the overall decline with a decrease by 4.9 and 7.0 per cent respectively in this period. Ships, boats and oil platforms, together with fabricated metal products, also saw a production decrease in this period.
The production decline that was present in the last six months of 2015 therefore continues into 2016. For more information about production in Norwegian manufacturing, please see Statistics Norway’s article about the oil-related production decline in 2015 (in Norwegian).
As can be seen in figure 2, there are some indications that the downturn is about to level off, after a considerable decline since the autumn of 2014. This is partly due to a production increase within food products together with the industry grouping refined petroleum, basic chemicals and the pharmaceutical industry in the period December 2015-February 2016 compared with the previous three-month period.
Monthly change: modest increase in production from January to February 2016
According to seasonally-adjusted figures, the manufacturing output saw a humble increase of 0.7 per cent from January to February 2016. The growth comes in particular from the industry grouping rubber, plastic and mineral products, where there was production growth in several subclasses. In addition, wood and wood products together with paper and paper products also saw an output increase in this period.
A production decline in machinery and equipment by 5.1 per cent however dampened the overall production increase in manufacturing. Lower production by some of the major manufacturers explains this.
Twelve-month change: distinct drop in Norway, growth in the euro area in January 2016
According to calendar-adjusted figures, production in Norwegian manufacturing dropped by 6.3 per cent from January 2015 to January 2016. Ships, boats and oil platforms and machinery and equipment contributed the most to the total output downturn. Estimated figures from Eurostat, the EU`s statistical office, indicate that production in manufacturing in the euro area went up by 4.0 per cent in the same period.
Three-month change: clear fall in total industrial production (PII)
According to seasonally-adjusted figures, the overall production index (PII) covering extraction, mining, manufacturing and electricity supply decreased by 2.3 per cent in the period December 2015-February 2016 compared with the previous three-month period. Extraction of crude petroleum decreased by 3.8 per cent, while extraction of natural gas dropped by 1.9 per cent in this period. For more details about oil and gas extraction for February 2016, see the press release from The Norwegian Petroleum Directorate.
Support activities for petroleum and natural gas extraction saw a production decline equivalent to 6.1 per cent in the period December 2015-February 2016. Producers within this industry are strongly related to the oil and gas industry, and the production decline should therefore be seen in conjunction with the declining investment activity within this industry.
Seasonally-adjusted figures also show that production within Norwegian electricity supply increased by 3.0 per cent in the same period. Production within mining and quarrying on the other hand fell by 9.6 per cent.
From October 2015, figures for Services in oil and gas extraction are published. According to SIC2007, Services in oil and gas extraction is grouped in section B Mining and quarrying. Producers within this industry supply, among other things, services related to drilling in exploration, appraisal and production wells, together with other services related to offshore activities such as installation of floating and fixed structures both above and below the sea floor. The time series is from the year 2010. This industry has always been a part of the aggregate Extraction and related services, but now its time series is also published separately in the data bank and tables.
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