Danske Research Team
Danske Bank A/S
Danish spending data up to and including 30 June shows some weakness in card and MobilePay spending in most categories. Some of it is due to payday effects, which will be out of the data next week, but we are also seeing spending decline in a number of subcategories not affected by this.
Aside from the payday effect, which should be out of the data later this week, we are seeing signs of weakening in retail spending. Areas that previously supported consumption have come down, with spending in grocery store spending at normal levels and DIY spending only slightly higher than usual.
The weakening in spending on clothing and shoe stores over the past weeks continues, with clothing spending 20% below normal levels and spending in shoe stores down 25%. This could also be affected by larger sales than normal, as we only observe the effects on nominal spending.
We are still to see a significant uptick in travel spending, despite anecdotal evidence that the opening of the borders would have an effect.
We expect some rebound in the spending data next week but there are signs of weakness and changing holiday patterns might also depress spending, as Danes spend less when holidaying at home than abroad.
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