Norges Bank

Press release

Regional network: Pickup in output growth

Norges Bank's regional network contacts report some increase in output over the past three months. Enterprises expect slightly higher growth over the next six months.

According to regional network contacts, output has increased somewhat over the past three months. Developments have been slightly stronger than contacts expected in May. Contributing to the increase are solid growth in public demand, improved competitiveness and a slowdown in the decline in oil sector demand. The strongest growth is reported by household services, construction and traditional manufacturing. Oil service contacts continue to report a fall in output, but the decline has moderated since May.

Prospects have been adjusted upward since the previous survey, and contacts expect moderate output growth over the next six months. Expectations that the decline in activity in the oil industry will moderate are contributing to the improved prospects. Contacts expect that demand from the public sector will continue to increase.

Capacity utilisation among enterprises has increased from 18 percent in May to 21 percent in this survey. Contacts continue to report that labour supply is ample. Contacts report that that the level of employment has remained approximately unchanged, but they expect a slight rise over the next three months. Overall annual wage growth in 2016 is estimated to be 2.4 percent, compared with 2.3 percent in May.

Information in this survey was provided by 329 regional network contacts. The interviews were conducted in August.

Regional network 3/2016


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Published 13 September 2016 10:00