Solid 2026 start supports outlook – Danske Bank

Danske Bank’s Spending Monitor, authored by Louise Aggerstrøm Hansen and Asger Wilhelm Dalsjö, reports that Danish real spending excluding energy rose in January, giving a firm start to 2026. Retail categories such as clothing, sporting goods and electronics improved, while furniture and airlines weakened. The bank expects higher real wages, lower taxes and better consumer confidence to support further real consumption growth.

Real spending strengthens as 2026 begins

“Adjusting for seasonality and prices, spending excluding energy increased 1.0% in January compared to December, driven primarily by retail consumption.”

“With real spending picking up towards the end of 2025, real spending excluding energy in January was 2.0% higher than in January 2025.”

“Overall, the real increase in total spending excluding energy in January aligns well with our expectation that households will increasingly translate real wage growth into higher real consumption in 2026, as they receive a significant additional boost from lower taxes and duties.”

“Recent months have also shown some improvement in consumer confidence, which should support spending growth going forward.”

“Total spending (including energy) rose sharply in real terms in January, as the removal of electricity duties send total CPI down -0.6% m/m from December to January.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)