Denmark: Consumer confidence wanes in July
The consumer confidence index released by Statistics Denmark fell to 2.9 in July from 5.8 points in June. Nevertheless, the index remained comfortably above the crucial zero-point mark that separates optimism from pessimism among consumers, where it has been since December 2016.
July’s decline was largely due a sharp swing in consumers’ assessment of the economic outlook for the next 12 months from optimistic to pessimistic. Households were also less upbeat about their future financial situation and expressed less likelihood of saving or making major purchases both now and over the next 12 months. On a brighter note, consumers were less downtrodden about the outlook for the labor market in July.
July’s downturn starts the third quarter on a weaker note, following strong consumer confidence throughout the second quarter, boding ill for private consumption growth prospects in the quarter.