Retail sales down 6.1% in January, but economists see domestic demand improving

THOUGH Singapore's retail sales declined further in January, economists see signs of improving domestic demand - though year-on-year figures in upcoming months should be viewed in the context of the low base effect from a year ago when the pandemic's effects were starting to be felt.

Retail sales fell 6.1 per cent year on year in January, figures from the Singapore Department of Statistics (SingStat) showed on Friday. This steepened from December's 3.3 per cent fall, which was in turn a worsening from November's improved figures.

January's steeper decline was due partly to high sales a year ago, when Chinese New Year was celebrated in January 2020, said SingStat. Chinese New Year fell in February this year.