Denmark's consumer confidence index rose to -13.1 in August from a revised -14.7 in July, according to Statistics Denmark, marking a second consecutive monthly improvement after June's low of -15.3. The increase suggests household pessimism has eased slightly as inflation shows tentative signs of cooling, although the index remains firmly negative. Views of personal finances and expectations for the next 12 months improved, while assessments of the broader economy and willingness to make major purchases remained subdued. Consumer confidence is closely watched because private consumption accounts for roughly half of Denmark's GDP. Inflation, which peaked above 10% in late 2022, had moderated to around 3% as of July 2026, while real wages have only recently begun to recover. The Danish reading was close to the eurozone average of -12.9 in July, weaker than Sweden's -8.5 and stronger than Germany's GfK reading of -21.4. Economists caution that one month's improvement is not enough to establish a sustained recovery. A possible European Central Bank rate cut in September could support sentiment, while renewed energy-price increases or geopolitical tensions could reverse the trend. The index remains far below pre-pandemic levels of around +5.