New figures: Danish companies expect upswing to continue despite European slowdown
The upswing is slowing in several European economies, but in Denmark it’s not over yet. Its continuation, however, depends on companies’ ability to obtain the qualified employees they need, notes DI’s chief economist.
18 per cent, or almost every fifth manufacturing company in Denmark expects to increase production in Q2 of 2019, show new figures from Statistics Denmark. This suggests that Danish manufacturing companies will continue to grow at a time when several European economies are slumping, says DI.
“Danish manufacturers continue to be optimistic about production, even though slightly more goods are being sent to warehouses for storage. Denmark’s optimism contrasts with German industry, where expectations have dropped to the lowest level since the European debt crisis,” says Morten Granzau, Chief Economist at DI.
Manufacturing in Denmark is less impacted by the European slowdown because production of wind turbines, foods and pharmaceuticals, for example, is less sensitive to market conditions. The expectation of a lasting upswing in manufacturing means that companies will increase investments in new technologies, machinery and equipment.
“While the economic upswing is flattening out for many of our European neighbours, companies still expect growth in manufacturing. This is good news, but it requires that companies are able to continue picking up the pace even though they’re running out of their fuel – that is, employees,” says Morten Granzau.