Turnover increased moderately in most industries in July and August of 2025 compared with the same months in 2024. Turnover increased most in vehicle sales and information technology but significant growth was also in certain sectors of the tourism industry and retail trade. Contraction was however in manufacture of base metals and specific areas of construction. Inflation was 3.9% for the period and in approximately half of all industries did turnover rise beyond that.
Turnover in the tourism industry increased most in physical well-being activities or by 31%. Significant growth was also in passenger transport by sea (15%), renting and leasing of motor vehicles (12%) and accommodation (12%). In food and beverage activities there was nearly 8% increase in turnover and 7% in passenger transport on land. Turnover at travel agencies was nearly unchanged (1%).
Turnover in the technology sector (excl. pharmaceutical production) amounted to 98 billion ISK and increased by 4% during the period of July to August 2025. Considerable growth was in information technology where the greatest proportional increase was in information service activities (data processing, hosting, etc.) or nearly 23%. In service activities related to information technology there was also 14% growth but only 3% in computer programming. On the other hand, turnover decreased by nearly 11% in manufacture of computer, electronic and optical products.
Turnover in real estate amounted to 31 billion ISK in July and August which was nearly 5% increase year over year. The growth was primarily due to increased rent revenue from commercial real estate. In the construction industry turnover stayed nearly unchanged due to 6% contraction in construction of buildings. However, this was counterbalanced by approximately 6% growth in specialised construction activities and 2 billion ISK increase in civil engineering.
Turnover in manufacturing of base metals fell by roughly 17% as the local currency strengthened and quantity exported decreased despite the world price of aluminium being modestly higher in July and August compared to a year earlier. In fishing, aquaculture and fish processing there was 5% growth as turnover in fisheries increased by nearly 6% and turnover in aquaculture stayed nearly unchanged.
Sale of motor vehicles increased significantly again as turnover in wholesale and retail trade and repair of motor vehicles and motorcycles grew by 21% in July and August with roughly 30% growth in vehicle sales, specifically. In retail trade there was also decent growth, or approximately 6%, where turnover increased by 9% in supermarkets and grocery stores and 31% at pharmacies. On the other hand, turnover fell by roughly 6% in hardware stores and 2% in clothing and footwear stores. Lastly, turnover in wholesale trade increased by only 2% as wholesale trade of fuel fell by 15%.
About the data
Data for turnover according to VAT reports is preliminary. All numbers are in nominal terms unless otherwise specified. Inflation was 3.9% during the period of July-August 2024 to July-August 2025.
Due to undergoing analysis of data for the industry manufacture of basic pharmaceutical products and pharmaceutical preparations it is not possible to release numbers for that industry and the industry group high and medium-high technology manufacturing. Furthermore, data for high and medium high technology manufacturing (and knowledge intensive high technology services) along with total numbers (total and total excluding agriculture and forestry) excludes turnover from the pharmaceutical industry. This applies to data going back to 2008.
Revisions: At the time of our last press release for the period May-June 2025 VAT-turnover was estimated to have been 1,262.6 billion ISK (+2.9%). Following a review with more data available the turnover is estimated to have been 1,263.6 billion ISK (+3.0%).
Statistics
The tourism industry
All economic activities