Danish Business Confidence Pulls Back from 1-Year High

The manufacturing confidence indicator in Denmark fell to 90.8 in June 2026 from 93.5 in the previous month, slipping further below the long-term average of 100. The latest reading marked the lowest level since December, driven by weaker expectations for production, which eased to 9 from 10, while employment expectations deteriorated to -21 from -18, pointing to a softer labor outlook in the industrial sector. Meanwhile, price expectations moderated, falling to 14 from 21, suggesting easing cost pressures. On a broader basis, the composite business sentiment indicator declined to 101.0 from 104.1. Confidence weakened in both industry and services, with the services indicator falling to 105.5 from 108.9, while retail trade slipped to 99.9 from 101.9. In contrast, construction sentiment edged up to 101.5 from 101.0, indicating continued resilience in the sector.

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.