FNI Update August – Growth has Slowed Down

The Financial News index (FNI) is designed to track Norwegian GDP growth and the business cycle at high frequency. The underlying indicators are daily time series representing how much the media writes about various topics.

The FNI was last updated 31 August.

In line with the weak GDP growth for the second quarter that was published last week, the index is revised down somewhat. However, the economic situation is somewhat better than earlier this year, but still below trend.

The development in FNI this spring has been extraordinary. Already in the beginning of March, the index fell sharply and quickly to very low levels. In mid-March, the levels of the index were lower than during the financial crisis and signaled a strong and potentially prolonged recession. This started to change at the end of April, and since then, the index has gradually become less negative and approach a more normal situation. Over the summer, however, growth has flattened, and the current level of the FNI index indicates that the Norwegian business cycle is well below trend levels.

chart (20)

The figure graphs the Financial News Index (FNI) with 68 percent confidence bands. The blue solid line demeaned quarterly GDP growth Mainland Norway, sourced from Statistics Norway (SSB). Please use the citation “FNI – Retriever/CAMP_BI” when using the index.

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