Denmark: Consumer confidence improves but remains pessimistic
November 22, 2012
In November, the consumer confidence indicator elaborated by Statistics Denmark (DST) rose to minus 1.3 points from minus 5.5 points in October. Despite the monthly improvement, consumer confidence remains mired in negative territory, which suggests a pessimistic outlook for private consumption in the near term. According to DST, households were less pessimistic about their current financial situation as well as regarding the current national outlook. Moreover, consumers were slightly more optimistic about their future financial situation. On a negative note, the sub-index relative to the willingness to make major purchases remained in pessimistic territory, despite improving over the previous month. That said, on 15 November, Finance Minister Bjarne Corydon noted that economic growth may fall short of the government's 0.9% growth forecast as the Eurozone crisis dampens consumer confidence. For 2013, the government expects GDP to grow 1.7%. The Central Bank, however, maintains a more pessimistic 0.3% growth outlook for this year and a 1.7% expansion in 2013.