Singapore retail sales up 1% in July on higher car sales
The month’s figure has fallen short of private-sector economists’ estimates
SINGAPORE’S retail sales grew 1 per cent year on year in July, reversing the previous month’s 0.6 per cent fall – though sales would have contracted if not for strong double-digit motor-vehicle sales.
The result was below estimates by private-sector economists polled by Bloomberg, who had expected July’s retail sales to grow 1.3 per cent year on year.
On a month-on-month, seasonally adjusted basis, retail sales gained 3.1 per cent, reversing from June’s 3.7 per cent decline, Department of Statistics (SingStat) data released on Thursday (Sep 5) showed.
July’s total retail sales stood at S$4 billion. Online sales accounted for 11.9 per cent, compared with June’s 12.1 per cent.
Excluding motor vehicles, retail sales fell 2.3 per cent from the year-ago period but posted a sequential gain – up 0.5 per cent on a month-on-month, seasonally adjusted basis.
The rise in motor-vehicle sales comes amid an increase in Certificate of Entitlement quota, compared to a year ago, noted DBS economist Chua Han Teng.
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Nine of the 14 retail sales categories recorded year-on-year declines in July.
Chua pointed out that spending on discretionary items continued to perform poorly, with department stores recording the biggest fall of 11.2 per cent, followed by wearing apparel and footwear (-10.3 per cent) and optical goods and books (- 8.7 per cent).
Despite the “normalisation in outbound travel”, residents likely held back on their spending in July, Chua said, citing “the diversion and frontloading of spending overseas during their June school holidays travel”.
But the economist expects retail-sales momentum to lift in the second half of 2024, compared with the weakness observed in the second quarter.
Sales will be boosted by upcoming events such as the Singapore Grand Prix in late September and a line-up of concerts, as well as improved labour market conditions, he noted. Government support measures – such as the Assurance Package – should also support household spending, he added.
On a month-on-month, seasonally adjusted basis, sales grew for eight of the categories. Motor vehicles recorded the largest increase of 21.7 per cent; cosmetics, toiletries and medical goods posted the largest sequential fall of 4 per cent.
Sales of food and beverage (F&B) services rose 0.2 per cent year on year, less than the revised 1.9 per cent growth posted in June.
Sequentially, F&B sales increased 0.6 per cent on a monthly, seasonally adjusted basis, reversing from the previous month’s 3.2 per cent decline.
On the year, only the F&B categories of food caterers (18.8 per cent) as well as cafes, food courts and other eating places (2.5 per cent) recorded growth. Meanwhile, restaurants (-3.7 per cent) and fast food outlets (-6.6 per cent) posted declines.
On a month-on-month, seasonally adjusted basis, all F&B categories posted increases except restaurants, which recorded a 0.8 per cent decline.
F&B services receipts amounted to S$989 million, with online sales accounting for an estimated 23.8 per cent of this sum.
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