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National Report for Regional Network - January 2005

Summary

• As in the last report, the picture is marked by solid growth in all industries. None of the regions have reported a decline in output/demand for any industry.
• The outlook for the next six months is considered positive for all industries. The export industry, building and construction and in particular the petroleum industry are more positive than in the previous round.
• Forty per cent of the companies report that they would have had problems dealing with expected or unexpected growth in demand. There are major differences between industries. Wholesale and retail trade have the least problems, whereas there are few building and construction companies that can deal with growth in demand without problems.
• Four out of five companies do not consider the supply of labour to be a constraint on output. The share that indicates that a shortage of labour is a constraint is largest in the building and construction sector.
• All industries report a modest increase in investment. Investment growth appears to be edging up in manufacturing, wholesale and retail trade and in the public sector.
• Employment is rising moderately in the private sector. Employment growth is strongest in building and construction. In manufacturing and the public sector, employment is stable. The private sector is planning a moderate increase in employment in the period ahead. Employment growth is expected to be strongest in building and construction and wholesale and retail trade.
• The average projection for annual wage growth in 2005 is 3.6 per cent. This projection is the same as in the last round but is somewhat higher than the projections for 2004 made at the same time last year (3.2 per cent).
• In the last year, prices have risen in all sectors except household services. The rise has been moderate in all industries.
• Prices are expected to rise at a somewhat faster pace in the next 12 months. Thirty-five per cent of the companies expect prices to rise at a faster pace (or to decline at a slower pace) while 16 per cent expect prices to rise at a slower pace.