INSTANT VIEW-Norway Sept manufacturing output up 2.2 pct

OSLO, Nov 6 (Reuters) - Norway's manufacturing output grew by a seasonally adjusted 2.2 percent in September from August, Statistics Norway said on Friday. ********************************************************* TOTAL INDUSTRY PRODUCTION (seasonally adjusted percentage change) Sept vs Aug Sept-09 vs Sept-08 Total output 0.9 -1.2 Oil and gas -0.1 -1.3 Manufacturing 2.2 -4.4 Electricity supply 6.6 0.3 NOTE: - A Reuters survey of 10 analysts had found a median expectation of a 0.4 percent rise in manufacturing output in September. Estimates ranged from a fall of 0.3 percent to growth of 1.3 percent. COMMENTS: KYRRE AAMDAL, SENIOR ECONOMIST AT DNB NOR "This is the third consecutive month with considerable gains, and that stands in contrast to PMI (purchasing managers index) numbers and several statements from the manufacturing industry." "There is still some problems in certain export oriented industries, for instance in ship building." "The market doesn't react much to these figures, which can be very volatile, but the three months we now have seen, supports the view that the economy is in better shape." "But there's now a split in the manufacturing sector, with a more negative outlook in parts of it." "We expect a rate increase of 25 basis points in March." ERIK BRUCE, CHIEF ANALYST AT NORDEA MARKETS "It was strong figures again, stronger than expected, and it is now clear that manufacturing output has turned to the positive." "It highlights the picture we have that Norges Bank's estimate for GDP growth in Q3 is too low." "We still believe that the first rate hike will come in February, but these figures increase the risk for a December hike." DETAILS: "Industrial production went up 1.4 per cent from the second to the third quarter of 2009, according to seasonally-adjusted figures. This growth came after a downturn in the four previous quarters," Statistics Norway said in a statement. - The Norwegian crown strengthened to 8.4131 at 0904 GMT from 8.4303 just before the data. LINKS: - For more data, the Statistics Norway Web site is: http://www.ssb.no/english/ - The manufacturing output statement is at: http://www.ssb.no/english/subjects/08/04/pii_en/ BACKROUND: - Norway is the world's fifth biggest oil exporter and western Europe's biggest gas exporter. - Norway's central bank, Norges Bank, increased it key rate by a quarter point to 1.5 percent in October, becoming the first European central bank to hike borrowing costs since the credit crisis. (Reporting by Oslo newsroom) Keywords: NORWAY MANUFACTURING/ ([e-mail]; [phone]; Reuters messaging: rm://[e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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