Denmark: Business sentiment in April plunges to the lowest level since current records began in 1985
Business confidence among firms in the industrial sector nosedived to minus 22 points in April from minus 7 points in March. Consequently, the index fell further below the zero-threshold that separates pessimism form optimism among Danish industrial firms. The more pessimistic result was broad-based by mainly due to firms’ grim view on output expectations.
Turning to other sectors, sentiment among the construction sector plunged 25 points to minus 33; sentiment in the service sector plummeted from minus 1 in March to minus 43 in April; while the retail sector’s outlook deteriorated 29 points to minus 31.
Looking ahead, the economic fallout from the lockdown will likely keep sentiment in the industrial sector severely depressed, due to declining domestic activity. That being said, the government has provided ample fiscal stimulus to weather the storm and loosened containment measures in recent weeks, which should help business confidence recover gradually.