Norway: Industrial production rebounds in December
January 6, 2015
In December, industrial output rose 0.3% over the previous month in seasonally-adjusted terms, which contrasted the 1.9% drop tallied in November. November’s print marked the largest drop since May 2014. According to Statistics Norway, December’s increase mainly reflected an improvement in oil and gas extraction as well as a rebound in manufacturing output. Conversely, growth in the electricity, gas and steam sector declined in December.
On an annual basis, industrial production in December expanded 3.5% in working-day adjusted terms. The reading came in under the 4.2% increase tallied in the previous month. In the full year 2014, industrial production expanded 3.6%, which contrasted the 4.9% contraction tallied in 2013.
Industrial production in Norway is highly affected by oil and gas extraction; the category accounts for about 72.0% of the index. According to the Ministry of Petroleum and Energy, oil and gas production has been declining ever since reaching a peak in 2001. While the government is encouraging operators to increase the recovery rates from oil and gas fields, the attempts have been undermined by increases in costs and taxes, which have dragged down overall industry output.