Danish Business Morale Lowest in Over 2 Years

Denmark’s manufacturing confidence indicator rose to 93.1 in January 2026 from 90.6 in the previous month. This marked the highest reading since August, although it remained well below the long-term average of 100. Employment prospects turned positive for the first time in five months (2 vs. -15 in December), however, production expectations weakened (2 vs 8). On the broader front, the composite business confidence indicator, which covers manufacturing, construction, retail, and services, fell marginally to 102.3 from 102.4 in December. Confidence improved in construction (101.7 vs 101.3) and retail (107.2 vs 104.2), while declined in services (104.8 vs 106.8).

The manufacturing confidence indicator in Denmark inched up to 90.1 in December 2025, following an over two-year low of 89.0 in November. Still, the latest reading remained well below the long-term average of 100. The uptick was driven by improved household sentiment regarding production, which strengthened to 8 in December from 2 in November, suggesting a more optimistic outlook. At the same time, expectations regarding employment were notably less pessimistic, easing to -15 in December from -21, but stayed in negative territory for the fourth consecutive month. Meanwhile, the broader composite business confidence indicator, covering manufacturing, construction, retail, and services, rose to 101.9 from 101.2 in November. Confidence improved in services (106.3 vs. 104.5), while construction slipped slightly (100.6 vs. 101.1) and retail sentiment weakened notably (104.3 vs. 109.2).

The manufacturing confidence indicator in Denmark dropped to 89.0 in November 2025 from a 92.3 rise in the previous month. This marked the lowest reading since February 2023 and remained well below the long-term average of 100, highlighting continued weakness in the sector. Employment expectations deteriorated to -21 from -14 in October, remaining in the negative territory for the third consecutive month. At the same time, household sentiment toward production decreased to 2 from 9, signaling a subdued outlook.