Danish Business Confidence Pulls Back from 1-Year High

Denmark’s manufacturing confidence indicator rose to 99.2 in July 2026 from 90.7 in the previous month. This marked the highest reading since April, although it remained slightly below the long-term average of 100. Production expectations strengthened, climbing to 16 from 9 in June, while employment prospects became less negative, improving to -9 from -21. On the broader front, the composite business confidence indicator, which covers manufacturing, construction, retail, and services, increased to 105.4 from 101.0 in June. Confidence in the service industry advanced to 107.3 from 105.5, while retail confidence turned optimistic, reaching 106.3 after standing at 99.8 in the previous month. Meanwhile, confidence in the construction sector edged down to 101.0 from 101.3.

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).