Growth Indicated In Denmark By Economic Barometer

10 Jul 2010

Companies in Denmark are starting to show a great improvement in spite of the red flags, as per new calculations from the Craftsmen’s Guild economic barometer. The quarterly barometer showed clear signs of renewed faith in the country’s economic health, for the first time since recession take over in 2008. A number of indicators are supporting an upbeat view of the coming months, although the economic outlook remains mixed. This is not the first time the barometer has risen during the downturn, but guild economist Jacob Theil said the improvement in the second quarter was larger than previous quarters. He cited company assessments of their current financial situation as well as their expectations for the year as the reasons for the improvement.

The use of Dankort debit card has risen around 5 percent in June. Retailers expressed optimism that this was a sign consumers were beginning to spend again although some commentators pointed out that this figure could decline again as summer sales end. Theil added that even with the signs that the economy is coming out the doldrums, a record number of bankruptcies’ in June signalled that a full recovery is still a long way off.

A number of indicators are supporting an upbeat view of the coming months although the economic outlook remains mixed. Fewer companies are planning to lay off workers, for instance, and industrial production rose 4.4 percent in May, continuing the generally upward trend of the past 10 months. Until he saw positive numbers for consecutive quarters, it would be too early to conclude that the recession was over, said Theil.