Housing market developments and rising equity prices have caused household wealth to rise again. Combined with continued handsome growth in disposable incomes and more upbeat consumer expectations, this means that we take a more positive view on the outlook for private consumption. The decline in consumption during the crisis has been sharper in Denmark than in most other countries.
Despite a fairly good rise in incomes. The consumption ratio has thus dipped and now stands at a very low level. This, together with general stabilisation of the economic development and the slightly positive sentiment, paves the way for the return of confidence and for households to spend the increase in disposable incomes on consumption and residential investments.