Increased demand from the grocery industry led to a jump in production in the industry – E24

Displays figures from Statistics Norway. The statistics are an index of national oil and gas production, industry, mining, and energy supply.

Despite the July increase, Norwegian industrial production fell 4.2 percent from the previous quarter.

The industrial group of petroleum refining, chemical and pharmaceutical industries was the one that most contributed to the decline in this period, with a 7.7% drop.

The crown crisis is largely to blame, but Handelsbanken’s chief economist Kari Due-Andresen also highlights oil investments that have fallen dramatically so far this year:

– This may sound a bit strange, since investment counts for oil and
Rather, the gas business has indicated a cautious increase in overseas investment this year. But as we mentioned before, this is eaten, and well,
of rising cost inflation, he writes in Handelsbanken’s morning report.

Grocery boom

July’s 1.8 percent increase is better than expected. Beforehand, economists at DNB Markets predicted a 0.4 percent increase, the same as the previous month.

Expectations of a modest increase came after production fell sharply. According to Handelsbanken, the drop from the January to June peak was almost eight percent, mainly due to a recession in the parts of the industry that are linked to the oil industry.

The food and beverage industries contributed the most to the overall increase. The industrial group had a 6 percent production increase in July.

According to Statistics Norway, the increase is due to high demand from the grocery industry.

Norwegian groceries had a value growth of more than 20 percent in the second quarter, which was characterized by home offices, quarantine and travel restrictions.

The Nielsen research agency, which was behind the survey, noted that multiple meals were eaten at home, quarantine rules imposed restrictions on cross-border trade and a booth ban ensured that most people spent Easter at home.

Rise in the eurozone

The rise in July comes after several months of low productive activity in the industry. Despite increased activity in the food and beverage industry, several industries are still heavily affected by the crown crisis.

At the same time, figures estimated by the EU statistical office, Eurostat, show that total industrial production in the eurozone countries increased by ten percent from May to June this year. The eurozone includes the 19 EU countries that use the euro as their currency.

In the months prior to May, the drop in production was marked, also in the euro area. Despite the increase, production activity is still low compared to June last year.

– We also note that industry leaders here at home are reporting continued negative production outlook, the third quarter as a whole. This is in stark contrast to what we see among several of our business partners, where industrial activity continues to increase again, writes Due-Andresen in Handelsbanken’s morning report.