Denmark’s industry sees surge in October production

Danish industrial production rose by 5.5% in October, with a 5.2% increase even without considering the pharmaceutical industry. This growth outperforms the usually strong German industry. Chief economist Las Olsen from Danske Bank attributes Denmark’s success to a smaller, less pressured automotive and heavy industry and potential positive spillover effects from the pharmaceutical sector. There is concern about whether Novo Nordisk might monopolize the labor market, but this hasn’t been the case so far, Las Olsen says. However, Denmark’s Statistics have adjusted previous months’ production figures downward, resulting in a 1.8% decline over the last three months. Industrial production, excluding pharma, has been stagnant for the last 8-9 months, due to weaker demand from key European export markets, notes Allan Sørensen, chief economist at Danish Industry. October’s production levels were 40% higher than during the pandemic, contrasting with Germany’s, which are about 10% lower.