Faroese economic barometer indicates downward trend despite consumer optimism

The Faroese Statistics Office is responsible for the economic barometer, also known as the confidence indicator.

The economic barometer comprises five distinct sectors: consumers, the resource industry, the service industry, the retail sector, and the construction industry. The consumer portion accounts for 20 percent, while the business segment represents 80 percent.

Historically, the average for the economic barometer is set at 16. Hence, when the figure for June of this year lands at minus five, it is significantly below average.

According to Birita Mortansdóttir, an economist at the Statistics Office, the resource industry lacks considerable confidence for what lies ahead.

In contrast, prospects appear brighter for consumers. Although fluctuations may not be substantial, consumers perceive a slightly more positive outlook for the future compared to what they did six months ago, Mortansdóttir notes.

This optimistic view from consumers also reflects in how the retail sector anticipates the future, with this sector’s metrics also displaying positivity.

Overall, however, the situation remains that the economic barometer indicates a downward trend, a sentiment that has persisted since January of last year.