Industrial Production in Denmark

The Industrial Production Index measures the volume of output of Danish industry (manufacturing, mining and energy supply). Published by Statistics Denmark (Danmarks Statistik), it is one of the most closely watched cyclical indicators because it anticipates the cycle.

It is expressed as an index against a base year (index 100), aggregating industrial branch sub-indices weighted by their share of value added. The data are usually calendar- and seasonally-adjusted and released as annual (YoY) and monthly (MoM) rates of change.

It is tightly linked to the cycle and GDP and relates to business-climate indicators (PMI), which tend to lead it. In Denmark, where a few large firms (pharmaceuticals) dominate industry, the figure can reflect those giants more than the sector as a whole.

It is subject to revisions: releasing one month's figure usually revises the previous one. It is very volatile owing to the weight of large firms and sensitive to the number of working days and to one-off factors.