Only the service sector has a small majority of companies which expect increased turnover and employment, according to a new review from national agency Statistic Denmark based on surveys conducted with Danish businesses.

In the survey, companies in various business sectors were asked about their expectations for the coming months.

In general, businesses in Denmark have experience challenges in recent months due to a labour shortage as demand increased following the Covid-19 pandemic. A raw material shortage was also an issue in some sectors.

These problems may now have tangible negative impacts on businesses, according to the survey.

“The expectations of businesses for the future in particular paint a clear picture of falling employment and turnover in the coming months,” said Kristian Skiver, senior economist with the Danish Chamber of Commerce.

“Only among service industries is there a small majority of companies that expect increasing turnover,” he said.

Service industries include the hotel and restaurant sector as well as transport, information and communication.

Several issues are dragging optimism levels at Danish businesses, the analyst said.

“Companies are seeing issues with supply chains and production costs are increasing rapidly,” he said.

“Additionally, sale potential has weakened because optimism amongst home consumers has dropped and growth projections for our most important export markets have weakened,” he said.