Economic confidence indicator in Faroe Islands declines for fourth consecutive quarter

The Faroe Islands’ economic confidence indicator, also referred to as the trust index, has declined for the fourth consecutive quarter, now sitting at minus five.

This index is composed of five components: consumers, the resource sector, the service industry, trade, and construction, with consumers representing 20 percent and business sectors accounting for the remaining 80 percent.

The Statistics Office is responsible for collecting data from these various groups to calculate the trust index. Historically, the long-term average for this index is 16. Therefore, the current figure of minus five for June is significantly below that average.

The resource sector, in particular, has shown a lack of confidence regarding future prospects. Hanus Hansen, a shipowner from Klaksvík, operates both in the local fleet, the Barents Sea, and on deep-sea fishing vessels. He notes that changes across all fronts contribute to a less optimistic outlook for the future.

For further insights, a conversation with Hanus Hansen is available for listening.