Denmark’s consumers prepare for biggest spending spree in a decade
A gauge of Denmark’s consumer sentiment published on Tuesday spells out some good news for businesses in the country: people are ready to spend. The index showed consumer sentiment at its highest level since July last year – something that Nykredit’s chief economist Tore Stramer says suggests an imminent spending spree. The good news comes on the back of a five and a half year-stretch of negative interest rates.
Governmental agency Statistics Denmark is responsible for the report, which seems to justify Denmark’s reputation as the happiest nation on Earth. In fact, the country has topped the UN’s World Happiness Rankings since inception in 2012. Still, even happy people can get happier.
Stramer says that Danes don’t have as much of an interest in stock markets as their Swedish counterparts – hence, the ups-and-downs we’ve witnessed so far this year have had little effect on consumers willingness to part with their krone.
The country is currently experiencing a labour shortage, which the government is trying to fill with “incentives to join the workforce” such as lower taxes.
Stramer urged investors in a note that “we may not quite be about to enter a definite spending party.” This is good news, as spending looks set to hit heights similar to pre-financial crisis levels in 2006.
The opinions in this article do not reflect those of Dominion Fund Management Limited, and in the instance of any forward-looking statements, these should not be construed as advice.
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