Denmark: Spending growth picked up slightly in August
Danish card data suggests that spending excluding energy increased by 2.8% in August compared to the same month the year before. Consumer prices excluding energy increased by 1.2% over the same period, meaning that in real terms spend-ing excluding energy rose by 1.6%. Spending growth thereby increased for second straight month.
Overall, travel spending performed somewhat modest during this summer com-pared to last year, when rainy weather drove up spending. Airlines and travel agency spending combined increased by around 4.8% nominally in June, July and August compared to same period last year. However, flight prices rose drastically, meaning that in real terms airlines spending fell nearly 9% during summer. Com-pared to pre-pandemic levels, real travel spending is performing fairly well, com-pared to other spending categories, hereby continuing a year long trend among Danish consumers.
Restaurant spending performed well in August, increasing over 8% in real terms compared to same month last year. Also spending in bars and nightclubs had a nice august, with real spending up 11.4% above the level from August last year.
Retail spending was a mixed bag in August. Grocery spending was up 4% y/y in real terms, while sporting goods spending increased 6.3%, shoe spending increased 3.7% and DIY spending increased 2.4%. Furniture spending on the other hand de-creased nominally, but due to declining prices increased by 2.7% in real terms. That, however, is much weaker than in June and July, where it increased by 21% and 9% respectively. Clothing spending declined slightly in august, and book stores saw real spending down 11% y/y, electronics spending fell by 3.7%.
Author
Danske Research Team
Danske Bank A/S
Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.
