European slowdown sidesteps Denmark, new figures say

European slowdown sidesteps Denmark, new figures say
File photo: Søren Bidstrup / Ritzau Scanpix
New manufacturing figures from Statistics Denmark, an important early indicator for the Danish economy, suggest that the country is avoiding a wider European slowdown.

Manufacturing grew by 0.5 per cent between March and April, according to the latest figures from Statistics Denmark.

That is good news for the Danish economy, with manufacturing an important early indicator for the direction in which the Danish economy is headed, says the Confederation of Danish Industry (DI), a privately-funded interest organisation funded, owned and managed by 10,000 companies within the manufacturing, trade and service industries.

“The slowdown in the European economy is not hindering the influx of orders to Danish manufacturing companies,” said DI’s chief economist Morten Granzau.

“Manufacturers in Denmark largely produce goods that are less impacted by ups and downs in the international economy, such as wind turbines, pharmaceuticals and foods. These companies are therefore less vulnerable when growth in the European economy slows down,” Granzau said.

The figures for industrial production and turnover are the first ‘hard’ indicator that Statistics Denmark puts forward regarding the development of the Danish economy. Danish manufacturing companies are responsible for almost 16 per cent of employment and about 18 per cent of value creation in the public and private sector, writes

Growth in industrial production also means that manufacturers have hired more employees.

“For the fifth year running, job creation in manufacturing continued to increase last year. Over the past five years, manufacturing companies have employed 17,000 new employees. New robots have made production smarter and more efficient, which creates new jobs,” Granzau said.

A fifth of manufacturing companies expect to increase production in coming months, and that increases the demand for new colleagues in the field.

“Expectations of continued industrial growth will cause manufacturing companies to hire more employees if they have access to available workforce. DI has recently completed a survey among almost 2,000 manufacturing companies showing that every eighth Danish manufacturer has turned down orders or moved production abroad as a result of labour shortage,” Granzau commented.

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