Regional network: Output growth picking up
Norges Bank's regional network contacts report that output growth has been moderate over the past three months. Output growth was somewhat higher than in the preceding period, and contacts expect the pace of growth to rise further over the next six months.
Contacts as a whole report that output growth has picked up somewhat since winter and at a slightly stronger pace than network enterprises expected in February. Output growth has been strengthened by growth in public investment, a less pronounced decline in the oil industry and increased private sector demand. Contacts as a whole expect output growth in the next six months to be higher than in the past three months.
The share of contacts reporting capacity constraints and recruitment difficulties has increased slightly. Contacts report a moderate increase in employment, which is expected to continue over the next three months. As a whole, contacts estimate annual wage growth of 2.5 percent for 2017.
Information in this survey was provided by 329 regional network contacts. The interviews were conducted in May.