Motor Vehicles Lead Growth While Other Sectors Show Variability
Singapore’s retail sales grew 2.2% year-on-year in October 2024, a slight pick-up from the 1.9% growth seen in September, according to Department of Statistics (Singstat) data released on December 5. However, performance across different sectors remained mixed, with motor vehicles standing out as the strongest performer.
Retail sales in the motor vehicle category have consistently led the sector since April 2024, driven by strong demand for cars and related goods. This was expected, noted DBS economist Chua Han Teng, given the sector’s ongoing trend of robust performance. However, the 2.2% growth was slightly below the 2.4% median forecast from a Bloomberg poll of private-sector economists.
On a month-on-month seasonally adjusted basis, October’s retail sales showed a 0.1% increase, marking a slowdown compared to the 0.4% expansion recorded in September. Despite this, total retail sales for October reached an estimated value of S$4.1 billion, with online sales contributing 12.7% of the total.
Excluding motor vehicles, retail sales showed a modest 0.3% increase compared to October 2023, a positive reversal from the 1.5% drop recorded in September. The sector also performed better on a seasonally adjusted basis, rising 1.2% from the previous month’s 0.3% decline.
With the year’s fourth quarter off to a good start, Chua remains optimistic that the positive momentum will continue into the final months of the year, supported by favorable base effects.
