Weekly bulletin 12 August 2024
Departure by non-domestic travellers from Leifsstöð International Airport in July were very similar to the previous year while departures by domestic tourists are somewhat fewer. August measurements for the consumer price index take place this week and several listed companies publish results.
12 August 2024
The week ahead
- Today, the Directorate of Labour publishes registered unemployment in July.
- On Wednesday, Amaroq and Kvika Bank publish results. The UK and USA publish inflation figures.
- On Thursday, Alvotech, Eik and SKEL publish results.
- On Friday, the Central Bank of Iceland (CBI) publishes results of a market expectation survey and payment mediation figures.
- Price measurements for the August consumer price index will be carried out this week.
Image of the week
Most economic indicators of the travel and hospitality sector show that the sector has reached a turning point following rather rapid growth in recent years. Departures from Leifsstöð by non-domestic tourists exceeded departures in the first 7 months of the previous year by 0.9%; VAT reports in typical sub-sectors of the travel industry exceeded that of the first 4 months of the previous year by 3.6% in real terms; non-domestic payment card turnover diminished by 12% in real terms in the first 6 months of the year; and, registered overnight stays by non-domestic guests in all types of registered accommodation were 4.1% fewer in the first 6 months of the year than in 2023. In general, the first months of the year showed a stronger performance than the summer months. August figures will be interesting as it is typically the most significant month in the Icelandic travel and hospitality sector.
Highlights of the previous week
- Around 277 non-domestic travellers passed through Leifsstöð International Airport, 0.5% more than in July 2023. July figures are a notable improvement from June, when traveller numbers were down by 9% between years. This year to date, non-domestic traveller visits to Iceland are up by around 0.9% compared to the same period the previous year. Domestic tourist departures were rather fewer in July this year than in the same month last year, or 63,000, a reduction of more than 11% compared to July 2023. To date, travel abroad by Icelanders is similar in volume to last year.
- The trade balance was negative by ISK 34 billion in July. In the first 7 months of the year, the deficit amounted to ISK 223 billion, 5% more than in the same period of 2023.
- Icelandair and Play released load figures.
- Nasdaq Iceland accepted equities in Play for trading on the Primary Market.
- Municipality Credit Iceland and Government Debt Management issued bonds.
Statistics and market data
Disclaimer
This review and/or summary is marketing material intended for information purposes and does not constitute financial advice or an independent financial analysis. This marketing material does not contain investment advice or independent investment analysis. The legal provisions that apply to financial advice and financial analysis do not apply to this content, including the ban on transactions prior to publication.Information about the prices of domestic shares, bonds and/or indices is source from Nasdaq Iceland - the Stock Exchange. Landsbankinn’s website contains further information under each individual equity, bond class or index. Information about the prices of non-domestic financial instruments, indices and/or funds are sourced from parties Landsbankinn considers reliable. Past returns are not an indication of future returns.
Information about the past returns of Landsbréf funds is based on information from Landsbréf. Detailed information about the historic performance of individual funds is available on Landsbankinn’s website, including on returns for the past 5 years. Information about the past performance of funds show nominal returns, unless otherwise stated. If results are based on foreign currencies, returns may increase or decrease as a result of currency fluctuations. Past returns are not necessarily an indication of future returns.
Securities transactions involve risk and readers are encouraged to familiarise themselves with the Risk Description for Trading in Financial Instruments and Landsbankinn’s Conflict of Interest Policy, available on Landsbankinn’s website.Landsbankinn is licensed to operate as a commercial bank in accordance with Act No. 161/2002, on Financial Undertakings, and is subject to supervision by the Financial Supervisory Authority of the Central Bank of Iceland (www.sedlabanki.is/fjarmalaeftirlit).
You may also be interested in
26 August 2024
Non-domestic payment card turnover in Iceland is higher this year to date than previously thought, according to updated figures published by the Central Bank of Iceland (CBI) last week. This week’s highpoint is the CBI’s interest rate decision on Wednesday.
19 August 2024
Non-domestic payment card turnover in Iceland is higher this year to date than previously thought, according to updated figures published by the Central Bank of Iceland (CBI) last week. This week’s highpoint is the CBI’s interest rate decision on Wednesday.
6 August 2024
Overnight stays by non-Icelandic travellers across all registered accommodation types contracted by 1.4% between years in June. This contraction is lower than that measured in non-domestic tourist numbers and payment card turnover
15 July 2024
The volume of travellers to Iceland decreased by 9% in June this year compared to June 2023. Unemployment was 3.1% in June, slightly higher than the same time last year.
8 July 2024
High interest rates have encouraged savings and detracted from demand in the economy. Household deposits had grown by 20% in May this year from the same month in 2023, according to the Central Bank of Iceland’s (CBI) newly published Hagvísar. Demand deposits have increased most.
1 July 2024
The consumer price index (CPI) rose by 0.48% in June. As a result, inflation measured 5.8%, down from 6.2%. Turnover based on March-April VAT reports contracted by 4.6% in real terms and the wage index rose by 0.2% in May, according to figures released by Statistics Iceland last week.
24 June 2024
The housing price index was up by 1.4% in May and the rental price index by 3.2%, according to figures published last week. While the Bank of England maintained an unchanged policy rate, the Swiss National Bank lowered its rate by 0.25 percentage points. Of most interest domestically this week is without doubt the CPI, to be published by Statistics Iceland on Thursday.
18 June 2024
Last week, we saw the publication of unemployment figures, tourist numbers and domestic payment card turnover in May. The US Federal Reserve kept its policy rate unchanged. Later today, the Housing and Construction Authority (HMS) releases the housing price index.
10 June 2024
The European Central Bank (ECB) lowered its policy rate last week. Stronger labour market figures from the US than generally expected increase the likelihood that the Federal Reserve will postpone initiation of rate cuts.
3 June 2024
Domestic product contracted by 4% in the first quarter of the year and inflation measured 6.2% in May, slightly higher than predicted.