Consumption in Denmark
Denmark - Consumption
GDP records marginal contraction in the first quarter
A second national accounts release confirmed that momentum was set back in the first three months of the year: GDP contracted 0.1% on a seasonally-adjusted quarter-on-quarter basis in the first quarter, below the 3.0% expansion logged in the fourth quarter of last year. Q1's reading marked the weakest reading since Q2 2020. Meanwhile, on an annual basis, economic growth moderated to 6.7% in Q1 (Q4: +6.8% yoy), slightly below Q1’s preliminary reading.
The marginal quarterly contraction was largely due to private consumption sliding at a steeper pace of 1.2% in seasonally-adjusted quarter-on-quarter terms in Q1, following a 0.7% contraction in Q4. The result came on the back of the reinstatement of Covid-19 containment measures as the Omicron variant started spreading in December 2021. Additionally, mounting price pressures dampened spending. However, the 1.0% increase in employment levels likely prevented a larger decline in spending. Moreover, government spending dropped, contracting 1.8% in Q1 (Q4 2021: +2.6% s.a. qoq). The reduction in public expenditure was largely due to a statistical effect; it had been elevated in the final quarter of last year. Fixed investment growth accelerated modestly to 2.6% in Q1, from the 2.4% expansion recorded in the previous quarter.
On the external front, exports of goods and services contracted 1.1% in Q1, marking the worst result since Q2 2020 (Q4 2021: +4.8% s.a. qoq). Similarly, imports of goods and services also swung into a contraction, declining 2.1% in Q1 (Q4 2021: +1.1% s.a. qoq).
FocusEconomics Consensus Forecast panelists see the economy expanding 2.9% in 2022, which is up 0.2 percentage points from the previous month’s forecast, and growing 1.8% in 2023.
Denmark - Consumption Data
|Consumption (annual variation in %)||2.3||2.4||1.6||2.7||2.2|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||-0.15||-1.54 %||Jan 01|
|Exchange Rate||6.66||-0.57 %||Jan 01|
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August 10, 2022
Consumer prices increased a seasonally-adjusted 1.14% in July over the previous month, picking up from the 0.80% increase recorded in June.
August 8, 2022
Manufacturing output expanded 1.1% in month-on-month seasonally-adjusted terms in June, which was a deterioration from May's 3.1% increase.
July 28, 2022
Business sentiment came in at minus 9.0 in July, matching June's reading.
July 20, 2022
Consumer sentiment came in at minus 25.6 in July, down from June's minus 24.8.
July 11, 2022
Consumer prices increased a seasonally-adjusted 0.80% over the previous month in June, below May's 0.90% increase.