Consumer confidence in Denmark has continued its downward trend, according to the latest figures released by Statistics Denmark. The consumer confidence indicator dropped to minus 17.0 in April, down from minus 15.5 in March, reflecting mounting pessimism among Danish households about both personal and national economic prospects.
The consumer confidence indicator is composed of five sub-indicators, four of which have deteriorated since March. The only improvement came from a slight uptick in attitudes toward the purchase of major consumer goods.
'The consumer confidence indicator is at minus 17.0 in April, which is a decline compared to last month, when it was minus 15.5. Four out of five indicators that together form consumer confidence have declined since last month. Only the indicator for the acquisition of major consumer goods has increased slightly. Consumer confidence reflects the population's view of the current and future economic situation,' the report stated.
Deteriorating financial outlook
Households now feel worse about their current financial situation compared to a year ago, with the corresponding indicator falling to minus 10.1. The six-month average stands at minus 8.3. Similarly, perceptions of Denmark's overall economic state have declined, with that indicator hitting minus 23.0, compared to a six-month average of minus 18.5.
Looking ahead, Danes are increasingly pessimistic about future finances. Expectations for household financial conditions a year from now dropped to minus 6.4, down from a six-month average of minus 2.6. National economic expectations worsened even more sharply, with the future outlook indicator at minus 31.7, compared to an average of minus 23.2.
'Consumers assess that the family's own financial situation today is worse than a year ago... Consumers also assess that Denmark's financial situation today is worse than a year ago... Consumers expect their family finances to worsen next year... Consumers expect that Denmark's economic situation a year from now will be worse than today,' the agency reported.
Cautious spending continues
Despite a minor improvement in sentiment regarding large purchases, consumers remain hesitant. The indicator for buying major items such as televisions or washing machines now stands at minus 13.6, a modest improvement from March but still significantly below neutral.
'Consumers assess that it is not advantageous to acquire major consumer goods at the moment. The indicator has improved slightly compared to last month and is now at minus 13.6,' Statistics Denmark noted.
More information:
Statistics Denmark
www.dst.dk