Denmark: Consumer confidence tumbles to two-year low in December
December 21, 2018
The consumer confidence index released by Statistics Denmark toppled to 2.9 points in December from 4.3 points in November, the lowest level since December 2016. Despite the fall, the index remained above the crucial zero-point mark that separates optimism from pessimism among consumers, where it has been for 23 consecutive months.
December’s drop came on the back of nearly broad-based declines across the components of the indicator. Notably, consumer’s confidence in the general economic outlook for the next 12 months fell to a two-year low, and now barely lies above the symbolic zero-point threshold. Consumers were also less optimistic about their current personal financial situation and the outlook for their finances over the next 12 months and consequently, remained pessimistic about making major purchases now or in the future. One bright spot of the report was households’ less negative assessment of the labor market in the next twelve months.
Author: Lindsey Ice, Economist