Turnover according to VAT reports grew in September and October of 2024 compared with the same months in 2023. Of the 12 largest industries turnover increased most in real estate, utilities, construction and technology. On the other hand, very little growth was in tourism while turnover stayed unchanged in fisheries and declined in vehicle sales. Turnover growth exceeded inflation (5.2%) in roughly half of all industries.
Turnover in real estate increased significantly or by 14% and 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 along with buying and selling of own real estate by corporates. The construction industry also grew significantly by 9% with 9% growth coming from construction of buildings and 11% from specialised construction activities.
The technology sector grew by roughly 9% in September and October with turnover amounting to nearly 120 billion ISK. This was largely due to nearly 44% growth in high and medium-high technology manufacturing which furthermore stemmed from growth in pharmaceutical production and manufacturing of medical equipment and products. Computer programming, consultancy and related activities also grew by 16%. On the other hand, turnover continued to decline in manufacture of computer, electronic and optical products (-36%) and in information service activities (data processing, hosting, etc.) (-57%).
Little growth was in tourism during the months of September and October. Total turnover was 174 billion ISK which was roughly 3% more than in the same period a year ago but nonetheless well below the period’s inflation. Only 2% growth was in passenger air transport and contraction of roughly 1% at domestic travel agencies. Turnover increased nearly 7% in accommodation, 6% in renting and leasing of motor vehicles and 2% in food and beverage service activities. Approximately 10% growth was in physical well-being activities and 9% in passenger transport by sea but only 1% in passenger transport by land.
Turnover growth varied considerably in the main export industries in September and October compared with the same period in 2023. Turnover increased by 8% in manufacture of base metals as the price of aluminium was considerably higher during this year’s period compared with last year and the ISK exchange rate remained stable. The quantity exported was however modestly lower and weighing against the price increase. In fishing, aquaculture and fish processing there were little changes as turnover in fisheries stayed unchanged at 99 billion ISK and aquaculture grew by 7%, amounting to 16 billion ISK. Therefore, fisheries continued to experience real contraction as growth remained below the period’s inflation.
Sale of motor vehicles continued to decline or by 15% (roughly 7% when including repair of motor vehicles). In other trade industries there was modest growth as turnover increased by nearly 6% in wholesale trade and 7% in retail trade. Wholesale of fuel products decreased by 9% as the price of oil was considerably lower compared with the same time a year ago. On the other hand, there was 5% growth in wholesale of construction materials and 13% growth in wholesale of hardware, plumbing and heating equipment. In retail trade there was most notable a 17% increase in turnover at pharmacies. However, turnover grew by only 5% in supermarkets and grocery stores, 4% in hardware stores and stayed unchanged in clothing and footwear stores.
About the data
Data for turnover according to VAT reports is preliminary. All numbers are in nominal terms unless otherwise specified. Inflation was 5.2% during the period of September-October 2023 to September-October 2024.
Revisions: At the time of our last press release for the period July-August 2024, VAT-turnover was estimated to have been 1,255.3 billion ISK (+5.7%). Following a review with more data available the turnover is estimated to have been 1,257.5 billion ISK (+5.4%).
Statistics
The tourism industry
All economic activities