Retail sales peak in over two years

Clothing retailers contributed to the highest retail sales in over two years in August, powered by significant wage increases. Danish Statistics’ seasonally adjusted assessment shows a 0.4% increase in retail sales in August compared to July. According to Jeppe Juul Borre, Chief Economist at Arbejdernes Landsbank, this small monthly growth continues a trend from early 2023, pushing sales to the highest in 28 months. A robust labor market and the possibility of lowering interest rates may also support future retail sales. Besides apparel, food, and other daily goods also boosted August’s retail figures. Due to rising employment and declining interest rates, Danes have had more disposable income, positively impacting retail trade in preparation for everyday life and the new school year. August’s retail sales rose approximately three percent from the same month last year, indicating healthy growth in the retail sector.