Central Norway

Interview round: 4-2007
Interview period:August 2007


  • There is moderate to solid growth in all industries. Growth appears to be strongest in retail trade and services, while the building and construction sector reports only moderate growth. The market outlook reflects expectations of continued growth, but capacity problems are a growth constraint in a number of industries. In building and construction, growth appears to be coming to a halt.
  • Investment is expected to continue growing in all industries and the local government sector.
  • Employment is growing in local government and in all industries except the building and construction industry, where growth now appears to have levelled off.
  • There is little idle capacity and the labour supply is the most common constraint. However, the supply of labour for the building and construction industry appears to have improved somewhat now.
  • Wage growth expectations are substantially higher than at the same time in 2006, and also higher than earlier this year. Expectations are 5½ - 6% on average. Growth expectations are highest for services, and lowest in local government. Expectations for retail trade are distinctly higher than earlier this year.
  • All in all, industries report a solid rise in prices. Corporate services and building and construction report the strongest growth. Growth appears to be on a rising trend for all service sector activities.
  • The rise in prices is expected to remain unchanged in retail trade and services in the coming year. There are now expectations of a slower rise in prices in domestically oriented industry and building and construction. Expectations in building and construction have changed most, and the consensus is now that growth will be slower in the coming year.
  • Operating margins in all industries appear to be stable or growing. Given growth in volume, this implies solid profitability growth. The margins appear to be widest in domestically oriented industry and among suppliers to the petroleum industry. Margins appear to be improving in manufacturing and building and construction.
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