Norway: Stronger growth and tighter labour market – Nordea Markets

Erik Johannes Bruce, analyst at Nordea Markets, notes that Norway’s employment is growing strongly and the labour market tightens.

Key Quotes

“Norges Bank has published its Q2 regional network report (business survey). The main indictor (current situation) was 1.51 which indicates a quarterly growth at 0.75 % q/q close to Norges Bank’s forecast. The forward-looking indicator is 1,57 (q/q growth at 0,8%) if anything on the strong side to Norges Bank’s forecast. Growth is generally strong in all parts of the economy and even in the retail sector growth has picked up.”

“The indicator for labour market tightness increased strongly.”

“Employment will grow by 0.5% both this and next quarter. That is on the upside to Norges Bank’s forecast. We are heading for growth in employment at say 1,9% this year compared to Norges Bank’s forecast at 1,6%.”

“No sign of weakness in the Norwegian economy, sooner the opposite growth seems to pick up further. Especially the labour market figures are on the strong side to Norges Bank’s forecast.”