Despite growth, figures fall short of economists’ expectations
Retail sales in Singapore increased by 1% year-on-year in July, reversing June’s 0.6% decline, according to data from SingStat. However, the growth fell below Bloomberg-polled economists’ forecast of 1.3%, with gains primarily driven by strong vehicle sales.
Key Figures
Total retail sales: S$4 billion
Online sales contribution: 11.9% (down from June’s 12.1%)
Month-on-month growth: 3.1% (after a 3.7% decline in June)
Excluding motor vehicles, retail sales fell 2.3% year-on-year but increased 0.5% month-on-month. The surge in motor vehicle sales was attributed to a higher Certificate of Entitlement (COE) quota, noted DBS economist Chua Han Teng.
Retail Sector Performance
Declining categories: Department stores (-11.2%), apparel and footwear (-10.3%), and optical goods and books (-8.7%)
Discretionary spending remains weak, reflecting cautious consumer sentiment
While the overall market showed modest recovery, continued weakness in non-essential spending suggests that consumer confidence remains fragile.
