OSLO: Norway economic growth fell to 0.2 percent in the second quarter as one of Europe's strongest economies was hit by a slowdown in consumption, official data showed on Tuesday.
"The cyclical upturn following the financial crisis seems to have stalled over the last three quarters," Statistics Norway said in a statement.
The agency also revised downwards growth in the January to March period to 0.6 percent from a previous estimate of 0.7 percent.
Analysts polled by Dow Jones Newswires had expected the economic output of Norway's mainland economy which strips out the oil and maritime sectors to increase by 0.6 percent in the second quarter.
"Lower activity was evident in several service industries, in addition to a fall in the value added of electricity and construction," Statistics Norway said. Household spending grew 0.2 percent, its slowest pace in two years.
"Given that the labour market is still booming, this might suggest that heavily indebted households are beginning to consolidate their balance sheets," James Howat of Capital Economics wrote in a research note.
The Norwegian economy is supported by a high level of investment in the oil services sector, but other industries began feeling the pinch of the European crisis late last year.
The slowdown comes at a bad time for the Nordic country's ruling leftist government, which is expected to lose power to the opposition in the country's general elections on September 9, according to the latest polls.
Adding the oil and maritime sector, gross domestic product increased 0.8 percent in the second quarter, after dipping 0.1 percent in the first quarter.
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