Norges Bank’s latest Regional Network survey indicates slightly lower capacity pressures among businesses, with fewer firms reporting full capacity utilization and fewer saying they are struggling to recruit workers. Companies have lowered their expectations for activity growth in the second quarter, but expect growth to strengthen somewhat in the third quarter. They now estimate wage growth at 4.5 percent in 2026 and 4.1 percent in 2027, both higher than in the previous round. All sectors except the oil supplier industry expect higher activity ahead. Many firms said customers have become more cautious because of prospects of higher interest rates and stronger cost growth, while increased defense investment and expansion of energy supply and data storage centers are improving the outlook for some businesses. Firms plan to increase employment slightly in both the second and third quarters, and overall profitability was little changed from the second quarter of last year.