New figures: European slump bypasses Denmark
Impressive, says DI about new industrial production figures from Statistics Denmark.
The slowdown of the European economy continues to bypass Denmark, show the latest manufacturing figures from Statistics Denmark.
Although industrial production did fall by 1.2 per cent in February, over the past three months production increased by 6.1 per cent.
“With February’s almost unchanged industrial production, the slowdown of the European economy continues to bypass Danish industry, and in several sectors companies even expect to increase production in coming months. Even when we take into account the fact that Danish industry has many pharmaceutical and food companies that are less dependent on market conditions, the figures are impressive, says Morten Granzau, Chief Economist at DI.
Growth is taking place in several sectors, but significant increases in the pharmaceutical industry as a result of price adjustments is a main driver. The broadly-based increase in production may prove temporary if the slump in German manufacturing continues.
“Expectations of continued growth in industrial production may result in industry workers lacking colleagues to fill incoming orders. In 2018 manufacturers hired 3,500 more employees,” says Morten Granzau.
However, if the slowdown of the European economy continues, we must expect Denmark’s industrial production to decline in coming months.
“If the German industry’s expectations of a continued manufacturing slump hold true, it will impact Danish industrial orders, too. Last year, exports of goods and machines to Germany amounted to DKK 45 billion,” says Morten Granzau.