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Region North-West

Summary

• The export industry reports moderate growth in volume during the past quarter. Solid growth is expected in the next six months. Domestically oriented manufacturing reports solid growth during the past quarter and expects growth to remain solid for the next six months.
• Suppliers to the petroleum industry report that activity continues to increase. Growth during the past quarter has been solid and is expected to continue during the next six months. Many new offshore vessels are still being ordered for delivery several years ahead. As in the previous round, capacity problems at shipyards and their subcontractors represent a constraint to further growth.
• Building and construction report solid growth again during the past quarter and are now operating at full capacity. Demand from the public sector, manufacturing and the housing market remains solid. Solid growth is also expected during the next six months. Labour shortages, however, are limiting growth.
• Retail trade reports solid growth during the past quarter and expects moderate growth during the next six months. Both household and corporate services report solid growth and expect the same growth during the next six months.
• All sectors except retail trade are planning to increase investment. Planned investment is highest among suppliers to the petroleum industry, particularly within shipping and equipment production.
• During the past quarter, employment has increased in manufacturing, building and construction and the service industry. These industries are also expecting further growth in employment. Building and construction expect the strongest growth. Employment has been stable in retail trade and the public sector during the past three months and is expected to remain stable during the next quarter. Skilled labour is in short supply. 80% of the contacts report that they would have some or considerable difficulty in accommodating a further rise in demand.
• The projection for annual wage growth in 2007 is between 4.5% and 5%, approximately the same as in the previous round.
• The rise in selling prices is solid. Prices have risen in all sectors, but building and construction and corporate services report the highest price rise. Nearly 30% of the contacts expect a higher rise in prices over the next 12-month period. The share of contacts expecting a higher rise in prices is lower than in the previous round. Profitability developments have been positive in most sectors. Suppliers to the petroleum industry report the greatest improvement in profitability.