Although industrial production did fall by 1.2 per cent in February, it has increased by 6.1 per cent over a three-month period.
“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,” said Morten Granzau, chief economist with the Confederation of Danish Industry (Dansk Industri, DI).
“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,” Granzau added.
Growth is taking place in several sectors, but significant increases in the pharmaceutical industry as a result of price adjustments is a main driver, according to the figures.
But the general increase in Danish production may prove temporary, the analyst warned.
“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,” Granzau said.
If the slowdown of the European economy continues, Denmark’s industrial production is unlikely to avoid decline 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 45 billion kroner,” says Granzau said.