Denmark: Consumer confidence ticks down in February
February 20, 2020
The consumer confidence index released by Statistics Denmark fell to 3.3 in February from 4.5 in January. Nevertheless, the index remained above the zero-threshold that separates optimism from pessimism among consumers.
The downtick in February was primarily driven by consumers’ less positive views towards the general economic panorama over the last 12 months and a more pessimistic outlook for the year ahead. Moreover, households were less inclined to make major purchases at present in February.
Looking ahead, a healthy labor market and an expected increase in house prices will likely support consumer confidence, while uncertainty over external risks should be receding due to less unknowns around Brexit. That being said, an uncertain global growth outlook will likely continue to drag on consumer optimism.
Author: Steven Burke, Economist