Consumer confidence in Denmark has declined for the fourth consecutive month, with the overall indicator dropping to minus 18.4 in May 2025, down from minus 17.0 in April, according to Statistics Denmark. This ongoing fall reflects consumers' increasingly cautious stance on the economy and their spending, particularly on major consumer goods, a trend likely to affect the furniture and interior sectors significantly.
The decline "is primarily due to consumers' assessment of Denmark's current economic situation, which has fallen significantly," Statistics Denmark reports. The indicator reflecting consumers' view of the country's economic health plunged from minus 23.0 last month to minus 32.0 in May, marking a considerable deterioration.
Consumers also assess their own household finances more negatively than a year ago, with the net indicator at minus 12.7 in May, worsening from an average of minus 8.8 over the past six months. Despite this, expectations for the future show some slight improvement. While consumers "still expect that their family's own financial situation in a year will be worse than it is today," with an indicator of minus 5.5, this is only a small decline compared to previous months. Similarly, expectations for Denmark's economic situation a year ahead have improved slightly, moving to minus 28.6 from more negative readings in recent months.
Significantly, consumers remain hesitant to purchase major items such as furniture, electronics, and appliances. The indicator measuring whether it is advantageous to buy large consumer goods currently stands at minus 13.4, reflecting a persistent reluctance to commit to big spending. The average for the past six months has been an even lower minus 15.1.
This cautious spending behaviour signals a challenging market environment for the furniture and interior industry, which relies heavily on consumer confidence and willingness to invest in home goods. As consumers "continue to hold back on purchasing larger consumer goods," industry players may see subdued demand and should consider strategies to adapt to tighter consumer budgets.
Adding to the uncertainty, consumers expect unemployment to rise, with the unemployment expectation indicator at 19.1 in May, up from a six-month average of 15.3. This anticipated increase in joblessness could further dampen spending power and confidence in the months ahead.
Price expectations remain high, with consumers believing prices have risen significantly over the past year and expecting this trend to continue. The net indicator for price increases now stands at 44.0, suggesting inflationary pressures may continue to weigh on household budgets.
This confluence of economic concerns, rising unemployment fears, and inflation means the Danish furniture and interior sectors must remain vigilant. With consumers cautious about making "major investments," industry players might explore innovative approaches such as flexible financing, targeted promotions, or product lines that offer better value and longevity to attract hesitant buyers.
More information:
Danmarks Statistik
www.dst.dk