Danske Research Team
Danske Bank A/S
Danish card and MobilePay data shows spending in the week up to September 20 up by just short of 10% compared to the same period in 2019. Spending has been more or less stable at 7-10% above normal for a few months now. Accounting for price developments and changes in cash spending this amounts to somewhat elevated spending, but far from a consumption boom. This despite consumers having seen a significant rise in disposable income and savings over the past 1-1/2 year.
Following the summer holiday we have seen a slight puck up in online spending, at the expense of a weakening in physical stores.
In retailing, shoes and clothing picked up again after a few weak weeks, but spending has more or less normalised. Electronic sales continues to hold up, though supply chain issues might be starting to show. In other parts of home related spending such as furniture and construction materials, we are seeing spending return to normal.
Culture related spending, such as concerts, cinemas and tourists attractions has performed well in recent weeks, indicating that guest are returning, as supply also starts to increase.
Travel spending has improved over the past week, but remains below normal for this time of year. Data for bookings of holiday homes suggests that Danes have booked 70% more stays in Danish holiday homes in October, compared to normal for this time of year.
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