Companies expect activity to remain at roughly the same level over the next half year, according to Norges Bank’s survey. DNB Markets still believe that interest rates will be cut this month.
According to Norges Bank’s regional network the overall production level has remained unchanged over the past three months, as was also reported in October. It’s still household services and traditional export industries that are reporting the highest growth, while oil suppliers are reporting the strongest decline in production.
337 companies have submitted reports this time, and the interviews have mostly been made in February.
Senior economist Kyrre Aamdal DNB Markets believes the main impression from the survey is that things are not as bad as feared.
– Today’s survey underscores the image of the weak output growth and low cost, but the risk that it will become much weaker is lessened. We still believe that Norges Bank will lower the interest rates in March, he said.
Source: NTB scanpix / Norway Today