Norwegian industrial managers report further production decline in Q1 2016. Also this quarter was particularly weak performance from producers of capital goods drove the decline. The general expectations of Q2 is also negative among the vast majority of industrial leaders, according to Statistics Norway (SSB).
Business Tendency Survey for Q1 2016 show a decline in total industrial production compared to Q4 2015.
“it is particularly manufacturers of capital goods which have had lower industrial production, and thus pulled down the industry overall,” writes SSB.
There is still the low activity among suppliers to the oil and gas sector which has contributed to the decline machine industry, shipbuilding and oil platforms, as well as machine repair and installation.
the decline has not gaining in strength in the aforementioned industries.
“that number of industry leaders who are negative for production development, were about the same or slightly less than in the previous quarter. producers of intermediate goods reported overall on similar production in Q4 2015. there were an increase in areas such as basic metals and lumber – and wood products, while manufacturers of chemical raw materials has reduced production. At the same time increased production within consumer goods, where especially food manufacturers experienced an upturn, “writes SSB.
The total employment declined in Q1 2016 and has been in decline in all three types of goods in industry.
“the decline is especially pronounced among manufacturers of capital goods that are specifically related to the oil and gas sector. The strength of the overall downturn in the industry is still not growing compared with the previous quarter, “writes SSB.
confidence indicator for industry was in Q1 2016 at -7.3 (seasonally adjusted net figure) and has gone up from -8.1 in the preceding quarter. This is well below the historical average of 3.1. Numeric values above zero indicate that the production volume will increase in the coming period, while numeric values below zero indicate that the production volume will fall.
Average capacity utilization in manufacturing has risen marginally and calculated to 77.0 percent at the end of Q1 2016, compared with 76.7 in Q4 2015.
Read more at SSB.
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