Danish card and MobilePay spending in September, up to and including 14 September, showed spending around normal levels. With cash spending still below last year's level, spending is around 3% lower than normal. However, strong car sales indicate good consumer activity in Denmark.
In retail, the first week of September showed some weakness, with spending in clothing and shoe stores declining last week.
Home improvement spending also weakened, along with spending in furniture stores. However, we expect these to increase in October, as we believe the payout of potentially over DKK30bn in holiday back pay to Danish consumers is likely to lift consumption in these categories significantly in Q4.
Spending in restaurants declined last week, driven largely by weaker spending in bars and nightclubs, as opening hours were restricted again. As further restrictions on opening hours – not only for bars and nightclubs but also for more traditional restaurants – will take effect this week in some urban areas, we expect to see a noticeable weakening.
Travel-related spending remains very low at around 75% below normal levels. We do not see any indication of increased travel activity in the autumn.
As more Danes are working from home and more restrictions are imposed on restaurants and nightlife, we expect spending to come down over coming days and weeks. However, we do not expect anywhere near the same effects as in lockdown.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.