Denmark: Pickup in spending continues, but lacklustre holiday spending in retail

Danske Research Team Danske Bank A/S

Danish card data suggests that spending excluding energy increased by 4.9% in December compared to the same month the year before. Adjusting for inflation, spending excluding energy increased by 3.3%. This confirms the trend from the last couple of months of a pickup in spending in Q4, after weak spending in Q2 and Q3, and lands 2024 growth in real spending excluding energy at 2.1% compared to 2023. Compared to 2019 spending in 2024 in real terms was up 2.9% excluding energy. Far from impressive over a five year period, but moving upward.

In December, retail spending increased only 0.3% in real terms compared to December 2023. This was mainly due to weak grocery spending, which fell 2.1% in real terms due to higher food prices compared to December 2023. Excluding groceries, retail spending looked better, increasing 2.6% in real terms. Holiday shopping in both November and December, excluding groceries and adjusted for prices, landed at 1.3% compared to the year before.

Across retailing, we continue to see rapid growth in furniture spending, which was up 10.8% since December 2023 in real terms. Spending in electronics and household appliances stores increased by 5.3%; however, this was probably affected by Cyber Monday falling in December in 2024 and November in 2023. Cosmetics and sporting goods stores continue to perform well, while clothing, jewellery, and DIY posted disappointing Christmas sales.

In December, travel-related spending picked up, and theaters and concert halls continues to perform extremely well. Restaurants, on the other hand, saw somewhat weaker growth. Consumers continue to spend more on streaming service.

Download The Full Spending Monitor

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.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.