Denmark: Consumer confidence softens in April
April 22, 2019
Consumer confidence moderated in April, with the consumer confidence index released by Statistics Denmark ticking down to 3.7 points from 3.8 points in March. However, the index remained above the crucial zero-point mark that separates optimism from pessimism among consumers, where it has been now for over two years.
April’s dip was driven mainly by consumers’ less positive view of their personal financial situation over the next 12 months. Moreover, consumers grew increasingly pessimistic about making major purchases.
April’s downtick comes after consumer confidence recorded the weakest quarterly average in over two years in Q1, as uncertainty surrounding Brexit and global trade protectionism weighed on sentiment. Going forward, consumer confidence should remain relatively subdued as external headwinds persist. Coupled with slightly stronger inflationary pressures, this could drag on household spending growth this year.
Author: Steven Burke, Economist