Norway: Industrial production continues to surge in November
January 9, 2020
Industrial production jumped a seasonally-adjusted 3.7% in November from the previous month—the fastest rise since June 2018—stronger than October’s 3.1% rise (previously reported: +3.5% month-on-month).
November’s surge was driven by a barn buster expansion in the extraction and related services sector, which accounts for around 65% of industrial production in Norway, mainly due to state-owned Equinor’s Johan Sverdrup offshore oil and gas facility ramping up production. Meanwhile, the electricity, gas and steam sector contracted at a softer pace, while the manufacturing, sector declined at a slightly stronger pace in November.
In annual working-day adjusted terms, industrial output dropped 0.9% in November, improving notably on the 5.7% plunge in October. Meanwhile, the annual average change in industrial production was minus 4.9% in November, down from October’s minus 4.6% reading.
This year, industrial production will likely continue to strengthen as Equinor’s Johan Sverdrup powers the extraction and related services sector. The mega-project is projected to provide a major boost to Norway’s energy sector in 2020, and will remain a key driver of industrial production over the next couple of years.
Author: Steven Burke, Economist