Denmark: Business confidence plummets below critical zero-point threshold at the outset of 2018
According to the business survey conducted by Statistics Denmark, business confidence deteriorated in January, dropping below the zero-point threshold that separates optimism from pessimism among manufacturers for the first time in five months. The indicator dropped from three points in December to minus three points in January, signaling a substantial downturn in business sentiment at the outset of 2018.
A breakdown of the components reveals the drop was spearheaded by significantly less optimistic expectations on production. This countered marginally more optimistic views on stocks of finished goods and order books. Business confidence reverting to pessimistic territory signals that the Danish economy’s lackluster performance in 2017 is expected to continue.