Denmark: Consumer confidence fades slightly in February
February 20, 2019
In February, consumer confidence dissipated somewhat, with the consumer confidence index released by Statistics Denmark falling to 3.3 points from 3.9 points in January. Nevertheless, the index remained above the crucial zero-point mark that separates optimism from pessimism among consumers, where it has been for over two consecutive years.
The slight downturn in February came on the back of a sharp fall in consumers’ confidence regarding their household finances both in the prior year and over the next 12 months. Consequently, consumers were more hesitant to make major purchases now or over the course of the next year. Moreover, their perspective of the labor market was also notably more downbeat in February.
On the flipside, consumers swung from pessimistic in January to slightly optimistic in February about the outlook for the economy over the next year. Meanwhile, their assessment of future consumer prices also improved. Which in turn, likely contributed to households’ higher confidence about their ability to save now and over the next 12 months.
Denmark Private Consumption Forecast
FocusEconomics Consensus Forecast panelists expect private consumption to expand 2.1% in 2019, which is down 0.2 percentage points from last month’s forecast. In 2020, panelists expect private consumption to grow 2.0%.
Author: Lindsey Ice, Economist