Consumer confidence steady despite wage growth

Danish consumer confidence has remained stable from February to March, with a slight positive adjustment in the current economic situation compared to last year, despite a slight decline in future expectations. March’s consumer confidence index is at -7.6, virtually unchanged from February’s -7.4, signaling stability. The index, based on a scale from ‘much better’ to ‘much worse’, considers personal and national economic perceptions for the present and future. Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, points out that wage increases, controlled inflation, and a strong labor market contribute to the optimism. Even with this, the general confidence level today remains low compared to pre-2022 figures. Nevertheless, with the dramatic drop in private consumption in 2022 reversing in 2023, there is an anticipation of continued growth into 2024, despite persistently weak consumer confidence.