Danske Research Team
Danske Bank A/S
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%.
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