Output growth in petroleum-related manufacturing

The index level for Norwegian manufacturing in the period March- May 2019 amounted to 119.2 (2005=100). The corresponding figure for the previous three-month period was 118.3. The long- term trend shows steady growth since May 2018 (see figure 1).

Three-month change: growth in petroleum- related manufacturing continues

According to seasonally-adjusted figures, manufacturing output increased with 0.8 per cent in the period March-May 2019, compared with the previous three-month period. The increase is particularly related to a strong production growth in ships, boats and oil platforms of as much as 7.8 per cent. High activity among producers of oil platforms contributed to this rise. In addition, the industry grouping computer and electrical equipment also contributed positively. Overall, petroleum-related manufacturing saw a clear increase of 4.1 per cent in this three-month period (see figure 2).

On the other hand, food products and basic chemicals contributed to the dampen the overall manufacturing growth with a decline of 1.3 and 4.3 per cent respectively. The fall in food products is partly related to reduced mackerel- and capelin quotas, while the downturn within basic chemicals is due to shutdown for maintenance work.

Monthly change: marginal growth from April to May

According to seasonally-adjusted figures, manufacturing output was more or less unchanged from April to May 2019 with a marginal increase of 0.3 per cent. Industries such as ships, boats and oil platforms and repair and installation of machinery contributed positively. Basic chemicals on the other hand saw a clear production fall.

Decline in the Euro area, clear increase in Norway in April 2019

Estimated figures from Eurostat, the EU’s statistical office, indicate that manufacturing output in the Euro area had a decrease of 0.8 per cent from March to April 2019. In the same period, Norwegian manufacturing output saw a clear output growth of 2.5 per cent.

Two of neighbouring countries, Sweden and Denmark, both saw an increase in this period of 1.4 and 0.5 per cent respectively.

 

Three-month change: clear fall in extraction of crude petroleum

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply saw a clear fall of 2.8 per cent in the period March-May 2019 compared with the previous three-month period. Extraction of crude petroleum decreased strongly by 6.9 per cent, while extraction of natural gas had a decline of 2 per cent. For more details about oil and gas extraction for May 2019, 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 2.9 per cent in the period March-May 2019 compared with the previous three-month period. The growth is partly related to an investment increase in the Norwegian oil and gas sector.

On the other hand, mining and quarrying saw a clear production fall of 5.7 per cent in the same period, while output within Norwegian electricity supply went down with 4.9 per cent. The decline in electricity supply must be seen in context with relatively mild weather in this three-month period, particularly in March.