Minor changes in manufacturing output

The index level for Norwegian manufacturing in the period December 2019- February 2020 amounted to 119.3 (2005=100). The corresponding figure for the previous three-month period was 119.5. After steady growth since May 2018, the long term trend shows that the output increase has leveled out in the second half of 2019 and in the first months of 2020 (see figure 1). This trend is however likely to be temporary, as the manufacturing output is expected to decline in the coming months, as a result of the effects of the Covid-19 virus.

Three-month change: decline in food products, growth in oil platforms  

According to seasonally-adjusted figures, manufacturing output was more or less unchanged from December 2019-February 2020 compared to the previous three-month period, with a marginal decline of 0.2 per cent.

Food products contributed the most to dampen the overall production development, with an output decline of 2 per cent. The fall is particularly related to lower production within processing and preserving of fish. In addition, basic metals also contributed negatively with a decline of 2.7 per cent, partly due to lower demand from abroad.

On the other hand, ships, boats and oil platforms had the largest positive contribution with an increase of 5.4 per cent. This increase is particularly due to high activity within building of oil platforms. The high activity among producers of oil platforms can be linked to a high investment level in the Norwegian oil and gas sector. 

Monthly change: minor decline from January to February 2020

According to seasonally-adjusted figures, manufacturing output saw a minor decline of 0.5 per cent from January to February 2020. Ships, boats and oil platforms saw a clear fall in this period, while wood and wood products had a strong increase, and contributed the most to dampen the overall decline.

Clear output increase in the Euro area in January 2020

Estimated figures from Eurostat, the EU’s statistical office, indicate that manufacturing output in the Euro area had a clear increase of 2.3 per cent from December 2019 to January 2020. In the same period, Norwegian manufacturing saw a minor increase of 0.4 per cent. In two of our neighboring countries, Sweden saw a production increase of 1.2 per cent, while Denmark experienced an output fall of 2.6 per cent.

For more key figures about the European business sector, see Eurostat’s information page about European economic statistics.

Three-month change: increase in the overall production index

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply saw a strong increase of 3.6 per cent from December 2019 to February 2020 compared with the previous three-month period.

Extraction of crude petroleum increased by 9.8 per cent, which can partly be explained by production from a new oil field that opened recently. Furthermore, extraction of natural gas also saw a strong increase of around 13 per cent. For more details about oil and gas extraction in this three-month period, see the press release from The Norwegian Petroleum Directorate.

Within support activities for petroleum and natural gas extraction, there was an output increase equivalent to 2.7 per cent from December 2019 to February 2020 compared with the previous three-month period.

In the same period, mining and quarrying saw a decline of 3.1 per cent, and Norwegian electricity supply decreased by 6.4 per cent.