Weaker growth in the Norwegian economy
Contact enterprises in Norges Bank's regional network reported that output growth over the past 3 months had slowed somewhat since the survey in August. Developments had been weaker than envisaged by network contacts in August. Expectations for the period ahead were also revised down.
Growth slowed in most sectors and was particularly low in domestically oriented manufacturing and retail trade. The export industry reported relatively stable growth. Growth in household services picked up somewhat.
Overall, enterprises expected output growth to remain approximately unchanged over the next 6 months. Growth expectations for the period ahead were revised down for all sectors except household services. The largest downward revision was reported by construction industry contacts, who now expected weak growth ahead.
The share of network contacts reporting capacity pressures fell further and contacts reported more ample labour supply. Employment growth remained firm, but contacts expected lower employment growth ahead.
Contacts estimated annual wage growth in 2014 at slightly below 3½ percent. Wage estimates in the different sectors are fairly similar.
Information was provided by 328 regional network enterprises in this survey. The interviews were conducted in October.
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