Norway Manufacturing Posts Biggest Contraction Since 2009
Norway’s manufacturing industry contracted last month, falling to the lowest level since October 2009 as orders and production slumped.
An index based on responses from purchasing managers fell to a seasonally adjusted 46.7 in June from a revised 52.3 the previous month, Danske Bank A/S (DANSKE) said today. The index was falling to 51, according to the median estimate of eight economists surveyed by Bloomberg. A figure below 50 signals a contraction.
The response rate for the survey was lower than usual because of technical problems, meaning an “increased uncertainty” over the data, Danske Bank said. The release date of the survey had been pushed back two days.
Norges Bank in June left its benchmark rate unchanged at 1.5 percent and signaled an increased chance for a cut in September as krone strength has cooled growth and inflation in Europe’s second-richest nation.
The PMI sub-index measuring orders slumped to 42.1 from 53.1 in May. The employment index fell to 47.8 from 50.6 and the production measure dropped to 46.6 from 54.9.
The krone erased gains, sliding 0.07 percent to 7.9411 per euro as of 1:06 p.m. in Oslo.
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