National Report Regional Network - September 2004

Summary

• In this round of interviews, all industries report that growth in output and demand remains solid. This development is expected to continue during the next six months.
• Manufacturing reports solid growth in output. The growth rate in the export industry is somewhat lower than in the last interview round. Domestically oriented manufacturing is experiencing solid and accelerating growth due in part to growth in demand in retail trade and building and construction.
• Large onshore development projects such as Ormen Lange and Snøhvit are contributing to solid growth for suppliers to the petroleum industry.
• In service industries, demand growth is stable and solid in all regions. Growth is expected to remain firm in the next six month period.
• The entire private sector is planning a moderate increase in investment in the next six to twelve months. The public sector reports that investment is stable. Tight local government finances are dampening the willingness to invest.
• Employment is rising markedly now in building and construction. Growth is still moderate in retail trade and service industries. Manufacturing and the public sector report unchanged employment.
• Annual wage growth in 2004 is currently projected at 3% for manufacturing and 3.5% for other sectors. This is lower than the projections for 2003 at the same time last year, when the projection was 3.5% for the private sector and 4.5% for the public sector.
• Prices are unchanged in retail trade and corporate services, while other industries report a moderate rise in prices.
• All industries report that profitability has improved.