Danish card data reveals a significant increase in spending, excluding energy, which rose by 4.9% in December compared to the previous year. This surge was primarily observed in travel-related expenses and entertainment, with theaters and concert halls performing exceptionally well. However, the retail sector experienced only modest growth in holiday spending. This publication aims to provide an economic overview and is not intended for private customers in the UK or US individuals.
Throughout December, retail spending increased by a mere 0.3% in real terms compared to December 2023. This lackluster performance was mainly attributed to weak grocery spending, which fell by 2.1% due to higher food prices. Excluding groceries, however, retail spending showed a more favorable increase of 2.6% in real terms.
The electronics and household appliances sector witnessed a notable 5.3% rise in spending. Similarly, furniture spending demonstrated rapid growth, climbing 10.8% in real terms since December 2023. Cosmetics and sporting goods stores also maintained strong sales, whereas clothing, jewelry, and DIY sectors reported disappointing results during the Christmas season.
Holiday shopping during both November and December, excluding groceries and adjusted for inflation, registered a modest 1.3% increase compared to the previous year. Adjusting for inflation, spending excluding energy rose by 3.3%. Despite these positive indicators, GBP/USD struggled to maintain recovery momentum after surpassing 1.2300 earlier in the day. The pair remains vulnerable amid ongoing US Dollar strength and turmoil within the UK bond market.
The Nonfarm Payrolls (NFP) data—considered one of the most crucial economic indicators globally—continues to exert influence on market dynamics. Typically released on the first Friday of each month, NFP data provides insights into employment changes within the US economy, impacting currency values worldwide.