Singapore retail sales up 2.2% in May on higher car sales

SINGAPORE’S retail sales grew 2.2 per cent year on year in May, reversing the 1.2 per cent decline in April, powered by higher motor vehicle sales.

Private-sector economists polled by Bloomberg had expected May’s retail sales to grow 0.2 per cent year on year.

On a month-on-month, seasonally adjusted basis, retail sales gained 2.4 per cent, reversing the previous month’s 2.6 per cent fall, Department of Statistics data released on Friday (Jul 5) showed.

May’s total retail sales stood at S$4.1 billion. Online sales accounted for 11.5 per cent of this, compared with April’s 11.8 per cent.

Excluding motor vehicles, retail sales remain unchanged from the year-ago period, but grew sequentially – up 3.3 per cent on a month-on-month, seasonally adjusted basis.

While May’s retail sales were in an expansionary range, they were largely driven by the strength in motor vehicle sales, owing to a larger Certificate of Entitlement supply, UOB associate economist Jester Koh said.

Half the 14 retail sales categories recorded year-on-year growth in May.

In particular, discretionary spending in categories such as wearing apparel and footwear, department stores, and recreational goods saw their year-on-year declines in April extend into May.

DBS economist Chua Han Teng attributed this to “prudence and diversion of spending overseas for better value amid a strong Singapore dollar”.

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Singapore April retail sales miss forecasts, fall 1.2%

On a month-on-month, seasonally adjusted basis, sales grew for 10 of the 14 categories. Cosmetics, toiletries and medical goods recorded the largest increase of 7.8 per cent, while motor vehicles posted the largest sequential fall of 3.2 per cent.

Sales of food and beverage (F&B) services rose 2.9 per cent year on year, stronger than the 0.1 per cent growth in April.

Sequentially, F&B sales increased 2.1 per cent on a monthly, seasonally adjusted basis, reversing from the previous month’s 0.9 per cent decline.

Most F&B categories logged year-on-year gains, with food caterers (18.8 per cent) and cafes, food courts and other eating places (4.5 per cent) posting the largest advances.

This was followed by fast-food outlets (0.9 per cent); the exception was restaurants (-1.4 per cent).