Minor fall in manufacturing output in February

The index level for Norwegian manufacturing in the period December 2020- February 2021 amounted to 119.5 (2005=100). The corresponding figure for the previous three-month period was 116.5. After a sharp decline from March to May 2020, manufacturing production has seen a steady growth, and the output level in February 2021 is higher than the levels seen prior to the Corona epidemic (see figure 1).

Monthly change: minor production decline in February after high activity in January

According to seasonally-adjusted figures, manufacturing output had a minor decline of 0.4 per cent from January to February 2021. Food products contributed the most to the overall output decline with a decrease of 1.8 per cent. In addition, there was also a production fall in the following industries:

• refined petroleum, chemicals and pharmaceuticals
• computer and electrical equipment
• machinery and equipment.

On the other hand, the overall production decline was dampened by a clear increase in wood and wood products as well as in repair and installation of machinery. Building of ships, boats and oil platforms contributed also positively, partly due to quarantines for foreign workers in January.

Three-month change: food products contributed to solid overall output growth

According to seasonally-adjusted figures, manufacturing output saw a solid increase of 2.6 per cent in the period December 2020- February 2021 compared with the previous three-month period. Several branches had an increase, but the overall growth can especially be related to an extraordinary high production level within food products. The increase was particularly strong within processing and preserving of fish due to high slaughter volume of salmon and pelagic fish.

Refined petroleum, chemicals and pharmaceuticals together with basic metals and building of ships, boats and oil platforms contributed also positively with a clear production growth in this period.

Figure 2 shows that there was an increase in both petroleum-related manufacturing and in other manufacturing branches. However, it was the latter that contributed the most to the overall output increase (see figure 2).

Monthly change: moderate growth in the Euro area in January 2021

Estimated figures from Eurostat, the EU’s statistical office, indicate that manufacturing output in the Euro area had an increase of 0.6 per cent from December 2020 to January 2021.

In the same period, Norwegian manufacturing production had a strong output growth of 2.5 per cent. Sweden saw a minor fall of 0.4 per cent, while Denmark had a clear increase of 2 per cent.

For more information on the development in European manufacturing sector, see this article from Eurostat.  

Three-month change: clear increase in total production index

According to seasonally-adjusted figures, the total production index (PII) covering extraction, mining, manufacturing and electricity supply had a clear output increase of 3.4 per cent in the period December 2020- February 2021 compared with the last three-month period. Extraction of crude petroleum saw an increase of 3.4 per cent, while extraction of natural gas was more or less unchanged. For more details about oil and gas extraction in this period, see the press release from The Norwegian Petroleum Directorate.

Within support activities for petroleum and natural gas extraction, there was a clear output growth of 4.1 per cent in the period December 2020- February 2021 compared with the previous three-month period. In the same period mining and quarrying saw a severe decrease of as much as 9.1 per cent, while production within Norwegian electricity supply increased strongly with 7.6 per cent.