National Report Regional Network - April 2004
| Interview round: | 2-2004 |
| Interview period: | April 2004 |
| Responsible: | Region South. Agderforskning |
Summary
The main impression from this round of interviews is positive economic developments and increased optimism. All business sectors report increased activity.
Increased household disposable income is contributing to higher demand and consumption for products from domestically-oriented manufacturing. In addition, the economic situation for the business sector in general is improving.
Positive global economic conditions, combined with the export industry's improved competitive conditions, have resulted in marked growth for export-oriented industries.
Growth in demand for corporate services is solid. This is also the case for building and construction. Residential construction and public sector projects in particular seem to be the driving forces.
There is still solid growth in retail trade and the household service sector.
Economic recovery and persistently low interest rates encourage plans in manufacturing and in wholesale and retail trade to moderately increase investment. Major changes have not yet been observed in the regions, although our network contacts report positive movements. Public sector investment is still high.
Building and construction, wholesale and retail trade and the service sector report moderate growth in employment, whereas there is no growth in employment in manufacturing and the public sector.
In 2004, annual wage growth is expected to be 3 per cent for manufacturing, 3.0 per cent for service industries and 3.5 per cent for the public sector.
The network reports some price increases in manufacturing and the service industries. There are no reports of a decline in prices.
The entire private sector reports that profitability has improved.