Global| Mar 05 2004Energy Output Lifts Norwegian Industrial Production
Summary
Industrial production in Norway rose 1.5% in January, making a 0.5% cumulative gain since January 2003. However, most traditional sectors of Norwegian industry experienced declines. Total manufacturing, for example, was off 2.8% in [...]
Industrial production in Norway rose 1.5% in January, making a 0.5% cumulative gain since January 2003. However, most traditional sectors of Norwegian industry experienced declines. Total manufacturing, for example, was off 2.8% in January from a year ago, encompassing a 10.5% drop in capital goods output.
There is clearly an offsetting factor and for Norway, that is energy production. Statistics Norway informs that the energy sector constitutes more than half of the nation's industry, 54.9% of value added in 2003. It can thus counter moves in most any other segment of the economy. So the weakness in capital goods, and in a traditional Norwegian stronghold, wood and wood products, is balanced by expansion in the energy sector.
Such domination by one sector obviously works both ways, and declines in energy output worsened economic performance in 1998 and again in 2002. However, a strong gain in 2001 prevented Norway from experiencing contraction then, even as many other major economies were in the doldrums.
| 12-Month % Changes, Selected Sectors | 2003 Weights | Jan 2004 | Dec 2003 | 2002 | 2001 | 2000 | 1999 | 1998 |
|---|---|---|---|---|---|---|---|---|
| Total | 1000.0 | +0.5 | -1.0 | -5.4 | +1.0 | -0.2 | +5.4 | -4.6 |
| Energy Goods | 548.7 | +3.9 | -0.3 | -10.4 | +7.9 | +1.4 | +10.2 | -8.1 |
| Capital Goods | 138.0 | -10.5 | -6.9 | -0.2 | -2.3 | -0.4 | -11.6 | +7.6 |
| Manufacturing | 451.1 | -2.8 | -0.1 | -3.1 | -3.1 | -4.4 | -1.1 | -0.2 |
| Food | 72.4 | -0.3 | +1.9 | -3.7 | -1.8 | -8.1 | +6.6 | -4.8 |
| Wood | 16.0 | -10.7 | -2.7 | -3.3 | -10.0 | -1.7 | +15.8 | -17.5 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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