Danish Business Confidence Pulls Back from 1-Year High

The manufacturing confidence indicator in Denmark fell to 93.5 in May 2026 from a one-year high of 100.7 in the previous month. The decline was primarily driven by a sharp deterioration in sentiment toward production, which dropped to 10 from 26 in April, indicating a less optimistic outlook. At the same time, employment expectations turned negative, falling to a multi-month low of -18 from a flat reading in the previous month, signaling weaker confidence in labor market conditions within the manufacturing sector. On a broader basis, the composite business indicator, which covers manufacturing, construction, retail, and services, fell to 104.1 from 105.5. Confidence improved in construction (101.0 vs 100.7) and services (108.9 vs 107.5), while retail trade weakened (101.9 vs 103.3).

Denmark’s manufacturing confidence indicator rose to 100.7 in April 2026 from 94 in the previous month, surpassing the long-term average of 100 for the first time in eight months and reaching its highest level in a year. The improvement was driven by stronger production expectations, which climbed to 26 from 14 in March. Employment expectations also improved, rising to 0 from -10 in the previous month. On a broader basis, the composite business indicator, which covers manufacturing, construction, retail, and services, increased to 105.5, the highest since February 2025, from 103.9 in March. Sentiment in the services sector improved (107.6 vs 106.9), while confidence in both construction (100.8 vs 102.4) and retail trade (103.3 vs 106.7) declined.

The manufacturing confidence indicator in Denmark rose to 94 in March 2026 from 92.5 in the previous month. Despite remaining below the long-term average of 100, the latest figure marked the highest reading since August, driven by stronger expectations for production, which climbed to 14 from 7 in February, the highest in seven months, pointing to a gradual pickup in industrial activity. However, the outlook was mixed as employment expectations turned negative, falling to -10 from 2. Meanwhile, price expectations slipped into contraction at -6 from 5, suggesting easing cost pressures. On a broader basis, the composite business indicator, which covers manufacturing, construction, retail, and services, increased to 103.9 from 103.3, indicating overall resilience in business sentiment. Confidence in construction improved to 102.5 from 100, and services rose to 107 from 106.2, while retail trade weakened to 106.7 from 110.7.