Danish Consumer Sentiment Series: Update to Assess Impact of Inflation and War in Ukraine, April 2022

Andreas Malby Gertie Find Laerkholm Emil Stamp

In this issue of the Danish Consumer Sentiment Series, we compare today´s consumer mood with the outcome of our Consumer Sentiment Survey conducted in January 2021.

Concerns about inflation and the war in Ukraine have significantly impacted the Danish consumer sentiment since January 2021. Back then, consumers had a positive outlook on their spending with survey data suggesting that net 5% of Danish consumers would increase their expenditure (compared to pre-COVID) when all restrictions had been fully lifted. In April 2022, all restrictions have been lifted. However, consumer confidence has shifted, and today’s consumers are more pessimistic. Our survey data from April 2022 suggests that net 11% of consumers are reducing spend today versus pre-COVID – a 16%pts deviation compared to expectations from January 2021. Moreover, consumers are not thinking about increasing their expenditure within any foreseeable future. Instead, net 6% of consumers expect to lower their spending even further. If applied directly, this would suggest an approximate 1.5% reduction in Danish consumer spending over the coming 12 months.

Concurrently, out of COVID-19 lockdowns, and in the light of ongoing economic uncertainty, new consumer preferences have emerged – we call the post COVID consumer: the cost conscious socially responsible consumer. The report reveals the characteristics of the new consumer and offers a suggestion of what companies should do to attract this new consumer.