Danish consumer sentiment worsened for the first time in 10 months as accelerating inflation makes Danes more pessimistic about the outlook for the economy and their personal finances.
(Bloomberg) — Danish consumer sentiment worsened for the first time in 10 months as accelerating inflation makes Danes more pessimistic about the outlook for the economy and their personal finances.
The consumer confidence index declined to minus 10.9 in August, from a negative 10.1 in the previous month, Statistics Denmark said on Wednesday. The measure was mainly pulled down by worse expectations for households and the overall economy one year from now.
The drop comes after Denmark’s inflation rate rose to 3.1% in July after an eight-month streak of declines, as reintroduced electricity taxes drove prices higher. The turn in inflation may have caused “some uneasiness among consumers,” said Palle Sorensen, chief economist at Nykredit A/S, in a note.
“The low consumer confidence is a little worrying in relation to the economic development,” the economist said. “The negative view on the economy can affect consumption.”
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