Norway: Industrial production hits a sixteen-month high in October
Industrial production surged a seasonally-adjusted 3.6% in October from the previous month—the fastest rise since June 2018—contrasting September’s 0.2% dip.
October’s jump was driven by a strong output increase in the extraction and related services sector, which accounts for around 65% of industrial production in Norway, likely as state-owned Equinor’s Johan Sverdrup offshore oil and gas facility came online. Meanwhile, the manufacturing, mining and quarrying sector was flat month-on-month in October.
In annual working-day adjusted terms, industrial output dropped 5.7% in October, improving on the 8.1% plunge in September. Meanwhile, the annual average change in industrial production was minus 4.6% in October, down from September’s minus 3.8%.
Going forward, 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.