Denmark's manufacturing confidence likely to climb -5 in September

In Denmark, the government presents its budget proposal for 2016. Some of the content has already been leaked. The government proposes to tighten by 0.3% ofGDP in order to avoid violating the so-called budget law stating that the structural deficit must not exceed 0.5% of GDP. 

The structural deficit is expected to be 0.4% of GDP next year, i.e. 0.1pp below the limit. Government consumption is planned to increase by 0.3% next year. A new budget outlook was published yesterday.

"The manufacturing confidence is expected to climb to -5 in September from -7 in August, which should be seen as a normalisation as manufacturing confidence has been subdued for a long time. However, the current slowdown in China and emerging markets is a downside risk to this forecast", says Danske Bank.