Regional network: Weak output growth
Norges Bank's regional network contacts report that output growth has been weak over the past three months. Enterprises expect continued weak growth over the next six months.
According to regional network enterprises, overall output growth has been weak over the past three months, in line with enterprises' expectations in February. Solid growth in public demand and improved competitiveness have contributed to a slight rise in the overall level of activity. Growth is still reported to be strongest in household services and traditional manufacturing, while the sharpest decline in output is reported by the oil service sector.
Prospects have been revised up slightly since February, but contacts expect weak output growth to continue in the next six months. Enterprises expect oil sector demand to continue to fall, while public sector demand is expected to pick up further.
Capacity utilisation levels among enterprises remain low, and enterprises report that labour supply is ample. Contacts report that the level of employment is little changed and is expected to remain approximately unchanged over the next three months. Overall annual wage growth in 2016 is estimated to be 2.3 percent, compared with 2.4 percent in February.
Information in this survey was provided by 321 regional network contacts. The interviews were mainly conducted in May.
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