Norwegian Regional Network Report

The Norges Bank Regional Network report signals easing capacity pressure and labor shortages, supporting a hold on interest rates at the June 18 meeting. While activity growth is slowing, upward revisions to wage growth expectations remain a concern for longer-term inflation.

Key Takeaways

• 1.Norges Bank is expected to remain on hold at the June 18 rate decision given signs of easing capacity and labor pressures.
• 2.Regional network data shows downward revisions to output and investment growth expectations.
• 3.Wage growth expectations for 2026 and 2027 were revised upward, with 2027 expectations appearing higher than central bank estimates.

Table of Contents

• Details
• Output expectations
• Investment expectations
• Capacity constraints and labour shortages
• Employment expectations
• Wage growth expectations
• Implications Norges Bank