Norway Industry December 2019

Norway

Norway: Industrial production eases in December, but remains upbeat nonetheless

February 7, 2020

Industrial production increased a seasonally-adjusted 1.5% in December from the previous month, which was weaker than November’s downwardly revised 2.6% rise (previously reported: +3.7% month-on-month).

December’s increase was driven by a healthy 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 manufacturing sector rebounded posting a slight rise over the previous month in December. That said, the electricity, gas and steam sector contracted at a sharper pace.

In annual working-day adjusted terms, industrial output increased 1.1% in December—the first expansion since December 2018—improving notably from the 0.9% fall in November. Meanwhile, the annual average change in industrial production was unchanged at minus 4.9% in December.

This year, industrial production will likely continue to strengthen as Equinor’s Johan Sverdrup powers the oil and gas 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.

FocusEconomics Consensus Forecast panelists project that industrial production will expand 3.0% in 2020, which is down 0.1 percentage points from last month’s projection, and to expand 3.2% in 2021.


Author:, Economist

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Norway Industry December 2019

Note: Month-on-month seasonally adjusted and year-on-year variation in %.
Source: Statistics Norway (SSB).


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