Record quarter for Norwegian industry as the boom could change the interest rate path
Wednesday, 07 August 2013
Norway's industrial output jumped 3.1 percent in June, which means that
the second-quarter industrial production ended at record levels,
according to Norwegian statistic office, Statistics sentralbyrå (SSB).
The growth in June was significantly greater than expected. Analysts
had on average expected a rise of 0.4 percent, according to a consensus
poll carried out by Reuters.
Largely, the growth has been driven by the oil-related industry according to Kjersti Haugland, an economist at DNB Markets
However, Marius Nyborg Analyst at Handelsbanken Capital Markets points
out that the figures for industrial production in recent months has
fluctuated considerably from month to month. But if ones looks at the
second quarter as a whole, production was up 2.5 percent compared with
the previous quarter.
"We believe that Norges Bank is less concerned about the monthly
changes in industrial production, and also draws attention to the
trend. The latter should indicate stronger activity than the bank
itself has set for itself. We also see that the labour market has
stabilized as the bank expected, but all in all, the figures relating
to real Norwegian economy recently has probably been better than the
central bank expected. Our assessment is that the interest rate cut in
September will be put on hold, enter Nyborg in an update on
Wednesday morning, report the Norwegian business daily Dagens
by Scancomark.com Team
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