Rising wages fail to brighten consumer gloom

Despite lower interest rates, higher wages, and a strong labor market, which could inspire optimism about personal and national economics, Danish consumer confidence is still falling as indicated by the most recent Statistics Denmark report showing a decrease to -7.4 in August from -7.4 in July. Consumers remain cautious, especially regarding major purchases like cars and home improvements. This caution is influenced by recent stock market unrest, as per Morten Granzau from Dansk Industri. Søren Kristensen of Sydbank notes not all have benefitted from wage increases, hence feeling poorer than at the start of 2021. However, Louise Aggerstrøm Hansen from Danske Bank remains hopeful for an eventual positive outlook, aided by expectations of lower interest rates. Consumer confidence is assessed via a survey among roughly 1000 Danes, where a positive indicator reflects optimism and a negative one the opposite.