Danish Consumer Confidence Rises to Six-Year High Amid Recovery
Danish consumer confidence rose in August to the highest level since November 2007 as a euro-area recovery boosts optimism in Scandinavia’s worst-performing economy.
Confidence rose to 5.9 from 3.7 the previous month, improving for a fourth month, Copenhagen-based Statistics Denmark said on its website today.
“Obviously, news of the euro area emerging from a recession and Prime Minister Helle Thorning-Schmidt saying the crisis is ending is contributing to the change,” said Helge Pedersen, chief economist at Nordea Bank AB, in a note.
Consumers were most upbeat on the current state of the Danish economy and its prospects over the next 12 months, the agency said.
The prime minister said this month she’s optimistic that the economy can revive as she plans a budget that balances fiscal discipline with spending to create more jobs. The government will reveal its proposal for 2014 on Aug. 27.
Germany, which bought about 15 percent of Danish exports last year, grew faster than estimated last quarter as the euro-area ended a record-long recession.
Denmark’s $355 billion economy stagnated in the first quarter after shrinking 0.5 percent in 2012. The nation has fallen behind neighboring Norway and Sweden, where smaller debt burdens and faster growth rates have underpinned demand. Danes, the world’s most indebted people, have hesitated to spend after house prices plunged 20 percent since their 2007 peak.
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