Stable development in stocks

Total stocks in manufacturing were considerably lower in the first quarter of 2010 than in the corresponding quarter last year, but the decline shows signs of leveling out.

Total stocks have shown a stable development after several quarters with falling stocks.There was almost no change in total stocks from the fourth quarter of 2009 to the first quarter of 2010. Measured in fixed prices, total stocks were 14.7 per cent lower in the first quarter of 2010 than in the first quarter of 2009. Reduced stocks of unfinished goods were the main reason for this.

Unfinished goods

correspond to products or parts of such products under construction. At a generally high activity level, the stocks of unfinished goods will usually be at a higher level than at a lower activity level.

Finished goods

correspond to products that are made ready for further sale to customers. A weakened demand will lead to stocks of finished goods increasing if the production is not adjusted according to the demand. The opposite is the case with an increasing demand and where the production is not adjusted according to the demand.

Source: Statistics Norway