Norges Bank Regional Network - Output Growth

Norges Bank Regional Network Report is a popular economic development indicator in Norway. Norges Bank publishes the indicator four times a year, based on direct surveys of companies in seven regions of the country, conducted by responsible regional organizations.

Norges Bank is responsible for conducting the country's monetary policy. Important data for decision-making is collected from the monitoring of cyclical changes and forecasts regarding national and global economic development. The Bank uses official statistics, among other data sources. But some variables are published only a few times a year, and they are often revised, so that the final figures can be set even with a delay of a few years. In order to receive the relevant and timely information directly from companies, the Bank established a Regional Network in 2002. The country was conditionally divided into 7 regions, in each of which a responsible authority was appointed. The Regional Network enables direct communication with companies regarding their financial state. The bank's representatives survey executives from over 300 enterprises and organizations about recent developments and future economic outlook.

Regional network reports allow obtaining data directly from companies on-site, during face-to-face discussions. Regularly engaging with the economy and society often provides the Bank with information faster than publicly available statistics. This data, combined with official statistics and economic information, form an important basis for Norges Bank's forecasts for the country's economic development.

The companies are asked to estimate demand, investments, capacity utilization, employment, costs and prices, and thus the final figure is a composite indicator. Regional data closely correlates with official statistics, and it is published much earlier.

Production growth is undoubtedly a favorable factor, so higher than expected production readings according to the Norges Bank Regional Network Report can be seen as positive for the Norwegian krone quotes.