Consumer confidence in Denmark has declined to its lowest level in almost two years, with the Consumer Confidence Indicator registering minus 15.5 in March. This marks a slight decline from February's figure of minus 14.5, according to the latest data from Statistics Denmark.
The Consumer Confidence Indicator reflects the Danish population's perception of both current and future economic conditions. Of the five sub-indicators that make up the overall measure, four have declined since last month, with only expectations regarding families' future financial situation showing improvement.
Decline in assessment of financial situation
Danish consumers have reported a worsening of their financial situation compared to a year ago. The indicator for household financial status currently stands at minus 8.0 in March, aligning with the six-month average of minus 8.1. Likewise, perceptions of Denmark's overall economic situation have deteriorated, with the corresponding indicator registering minus 21.6, compared to a six-month average of minus 16.3.
Falling confidence in Denmark's economic outlook
Consumer sentiment regarding Denmark's economic future has declined further. "Consumers still expect that Denmark's economic situation in a year will be worse than it is today," Statistics Denmark reported. The indicator for national economic expectations fell to minus 30.8 in March, well below the six-month average of minus 19.4.
Meanwhile, expectations for household financial conditions over the next year have improved slightly from minus 4.8 last month to minus 1.9 in March, closely aligning with the six-month average of minus 1.7.
Hesitancy in major purchases continues
Consumers remain reluctant to make large purchases, with the indicator for major consumer goods, such as televisions and washing machines, standing at minus 15.1. This figure remains close to the six-month average of minus 15.5, indicating persistent caution among Danish households.
Concerns over rising unemployment persist
Expectations of rising unemployment remain elevated. 'Consumers continue to expect that unemployment will have increased in a year compared to today,' Statistics Denmark noted. The indicator for unemployment expectations reached 17.1 in March, exceeding the six-month average of 13.4.
Methodology and next release
Statistics Denmark conducts the Consumer Confidence Survey through telephone interviews and online responses with a representative sample of the population aged 16-74. Monthly fluctuations in the indicator must typically exceed five points to be considered statistically significant.
The next release of the Consumer Confidence Indicator is scheduled for 22 April 2025.
More information:
Statistics Denmark
www.dst.dk