Norway: Improved outlook for manufacturing – Nordea Markets

According to Erik Johannes Bruce, Research Analyst at Nordea Markets, manufacturing industries will push up general wage growth in Norway.

Key Quotes

“The business survey clearly indicates that manufacturing production is growing. Increasing new orders and increasing stock of order and general optimism among the firms argues for high production growth in manufacturing also looking ahead. Perhaps more important prices went up both in domestic and export markets.”

“Wage growth in Norway is set to increased further from the current level slightly below 3,0% up from last year’s 2,3%. Higher wage growth is one of the main reasons why Norges Bank will continue hiking the coming years. Even the Ministry of Finance expect wage growth to increase to 3 ¼% % next year. Ministry of Finance normally have a moderate wage growth forecast, probably for normative reasons. Partly because it will keep up Norway’s competitive position partly because it is part of the wage settlement as employer in public sector.”