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National Report for Regional Network - November 2004

Summary

• All regions report continued solid growth in output and demand in most industries. On the whole, this trend is expected to continue for the next six months.
• Domestically oriented manufacturing and service industries in particular show further growth since the last reporting round, while the growth rate of the export industry and retail trade shows signs of slowing.
• A high level of activity is reported in regions where petroleum-related manufacturing has a strong position.
• Lower volume growth is reported in traditional export industries because of the strong krone and tough competition. However, new orders for the shipping industry have picked up strongly during this past period, but the full effects on activity will not be felt until next spring.
• There are plans for a moderate increase in investment throughout the private sector. The general picture in manufacturing is still that investment is being focused primarily on improving production efficiency, but there are now also reports of plans to increase capacity.
• Enterprises are still cautious with regard to new recruitment. Employment is increasing somewhat in construction, retail trade and other services. The labour market has become somewhat tighter for most industries during the past six months. The construction industry in particular reports a shortage of qualified labour.
• Moderate wage growth, approximately in line with the previous round, is reported in manufacturing and retail trade, while wage estimates for services and the public sector are somewhat higher than in the previous round.
• Strong competition is still curbing price increases, but prices are now rising at a faster pace in some service industries and in construction.
• Overall, the main industries are still showing higher profitability.