September 17, 2021

Norway business activity rises but bottlenecks emerge

Norwegian flags flutter at Karl Johans street in Oslo, Norway, May 31, 2017. REUTERS/Ints Kalnins/

OSLO, Sept 14 (Reuters) – Norwegian business sector activity has increased substantially during the past three months and will continue to expand during the next half year, though capacity constraints are now growing, a central bank business survey showed on Tuesday.

Norges Bank is widely expected to raise interest rates at a monetary policy meeting next week, from a record low 0%, and has said it may hike three times more by mid-2022 if the economy develops as expected.

“Contacts report higher output growth in all sectors over the past three months. The rise has been most pronounced in manufacturing and household services,” Norges Bank said in a statement accompanying the quarterly sentiment index.

“Close to half of the contacts are facing capacity constraints.”

The Norwegian economy has…

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