Turnover according to VAT reports grew modestly in July and August of 2024 compared with the same months in 2023. Of the 12 largest industries turnover increased most in technology, utilities and construction. On the other hand, very little growth was in tourism while turnover declined in both vehicle sales and fishing, aquaculture and fish processing. In many industries turnover grew by less than the period’s inflation (6.1%).
Turnover in tourism increased by only 1% compared with the previous year and totalled 234 billion ISK. Overall, there was very little growth or declines in all areas of the tourism industry except in travel agencies abroad (12%). Passenger air transport grew by 3%, accommodations by 2% and domestic travel agencies by 1%. Renting and leasing of motor vehicles declined by 7%, passenger transport by sea by 5%, passenger transport by land by 3% and food and beverage service activities by 1%.
On other hand, there was significant growth in the technology sector in July and August compared with the same months in 2023, or 16%. This was primarily due to nearly 43% increase in turnover in high and medium-high technology manufacturing which furthermore stemmed from growth in pharmaceutical production and manufacturing of medical equipment and products. Computer programming activities also grew by 13% and knowledge-intensive high technology services by 10%. Turnover continued to decline in manufacture of computer, electronic and optical products (-21%) and in information service activities (data processing, hosting, etc.) (-26%).
Turnover in real estate increased by nearly 9%, totalling 29 billion ISK. Most of the increase was due to higher rent revenue from commercial real estate but turnover in real estate brokerage also grew considerably. The construction industry also grew significantly by 12% with 19% growth coming from construction of buildings and 12% from specialised construction activities.
Turnover growth varied considerably in the main export industries in July and August compared with the same period in 2023. Reversal of growth occurred in manufacturing of base metals with turnover increasing by 10% as the price of aluminium rose modestly to a higher level from a year ago. However, turnover contracted by nearly 1% in fishing, aquaculture and fish processing which was largely due to a 20% contraction in aquaculture. Excluding aquaculture, turnover in fisheries grew modestly by 2% in July and August which was still below the period’s inflation and a continuation of recent low-growth results in the industry.
Sale of motor vehicles continued to decline or by 27% (18% when including repair of motor vehicles). Other trade industries also experienced little growth. Turnover in wholesale trade increased by 5% due to 16% increase in wholesale of hardware, plumbing and heating equipment while wholesale of fuel products remained unchanged as the price of oil and the ISK exchange rate stayed within the same range as in 2023. Retail trade grew modestly better than wholesale trade or by nearly 7% and in line with inflation. Turnover in supermarkets and grocery stores increased by 7%, 5% in clothing and footwear stores and 4% in hardware stores. Lastly, pharmacies grew markedly by 12%.
About the data
Data for turnover according to VAT reports is preliminary. All numbers are in nominal terms unless otherwise specified. Inflation was 6.1% during the period of July-August 2023 to July-August 2024.
Revisions: At the time of our last press release for the period May-June 2024, VAT-turnover was estimated to have been 1,232.3 billion ISK (-0.13%). Following a review with more data available the turnover is estimated to have been 1,236.1 billion ISK (+0.2%).
Statistics
All economic activities
The tourism industry