In January 2025, consumer confidence in Denmark showed a slight improvement, though it remains in negative territory. The consumer confidence indicator, which measures the public's view on the economy and their personal financial situation, moved up from -13.1 in December to -11.7. This small rise is primarily attributed to a more positive view of consumers' current financial conditions. However, other indicators either saw only marginal changes or remained steady.
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Despite this slight improvement, consumers still feel pessimistic about the broader economic outlook. Many continue to view Denmark's economic situation as worse compared to the previous year, with the indicator standing at -15.9 in January. The trend is also reflected in personal assessments, where people are increasingly worried about their own family's financial state. This indicator climbed to -5.3, a noticeable shift from the previous month's -11.2, though it remains negative overall.
Looking ahead, Danish consumers do not expect the economy to improve any time soon. The outlook for the next year is grim, with an indicator of -18.6, suggesting a continued deterioration in economic conditions. Consumers are also cautious about major purchases, with the confidence indicator for buying larger consumer goods, like electronics, sitting at -17.8. This suggests that most consumers are holding back on significant spending decisions.
Furthermore, many anticipate a rise in unemployment over the coming year. The unemployment expectation indicator remains unchanged at 10.1, signalling that consumers are preparing for tougher job markets. In light of these economic challenges, a majority of consumers continue to prioritise saving, with a steady percentage expecting to save in the coming months, though the rate has dipped slightly.
Overall, while the modest improvement in consumer confidence offers a glimmer of hope, the prevailing sentiment remains one of caution. As consumers brace for what they perceive as a more difficult year ahead, retailers and businesses may find it challenging to drive significant consumer spending.
More information:
Statistics Denmark
www.dst.dk