Surprising consumer confidence rebound

For the first time in a year, consumer outlook is looking up – Economists are optimistic, but say it’s too soon to read anything into the numbers

Danish consumer confidence in June improved much more than expected, according to Danmarks Statistik figures released yesterday. 

For the first time since July, the monthly consumer confidence index found that Danes, on average, had a positive outlook on the economy.

The consumer confidence index measures individuals’ outlook on the economy on a scale from -100 to 100. It rose in June to 3.4, up significantly from -2.6 in May. 

Economists had expected an improvement to -2.0 in June and Tore Stramer, the lead economist with mortgage lender Nykredit, said the figure was a sign consumers were positive about their own finances and the overall economy.

Yesterday’s figures also indicated that for the first time since last April Danes expect the unemployment rate to fall.

Jens Nærvig Pedersen, an economist with Danske Bank, wrote in a commentary to the figures that it was too early to predict whether the improvement would continue.

“For the time being, the statistics' renewed optimism is specific to one month and we’d like to see the improving optimism take hold before we can comfortably announce a change in consumer behaviour. That said, this is great news for the economy.”