Growth in spending was fuelled in particular by purchases of durable goods like furniture and household appliances and sporting goods, while the seasonally adjusted statistics on new car sales show a decline from the first to the second quarter. Consumption of goods increased by a total of 2.2 per cent from the first to the second quarter.
After flattening out in the first quarter of 1997, household consumption in Norway began to rise again in the second quarter. Preliminary estimates show that from the first to the second quarter spending grew by 1.5 per cent adjusted for normal seasonal variations. Consumption in the first half of 1997 was 3.4 per cent higher than spending in the same period in 1996.
According to the preliminary statistics from the quarterly national accounts, government consumption expenditure increased by nearly two per cent in the first half of 1997 compared to the same period in 1996. Consumption growth in public administration is calculated at 1.4 per cent and about 2.7 per cent in local government administration. In local government administration, which also includes county operations, consumption expenditure in health and social services grew the fastest, increasing nearly seven per cent from the first half of 1996, figured in constant prices.
Investment growth in Mainland Norway
Fixed capital formation in Mainland Norway from the first to the second quarter increased by nearly six per cent adjusted for normal seasonal variations. The growth in investments was particularly strong in the industrial and power supply sectors. Investments in oil activities continued to expand at a rapid pace in the second quarter, and compared to the end of 1996 the seasonally adjusted investments in the second quarter were about 35 per cent higher.
Weekly Bulletin issue no. 36, 1997