Singapore retail sales up 8.4% in February from Chinese New Year festivities

SINGAPORE’S retail sales grew 8.4 per cent year on year in February, extending the 1.6 per cent growth posted in the month before. The increment was boosted by receipts from Chinese New Year (CNY) festivities.

Private-sector economists polled by Bloomberg had expected February’s retail sales to grow 1.9 per cent year on year.

On a month-on-month, seasonally adjusted basis, retail sales gained 3 per cent, reversing from January’s 0.7 per cent fall, Department of Statistics (SingStat) data released on Friday (Apr 5) showed.

February’s total retail sales stood at S$3.9 billion. Online sales accounted for 10.9 per cent, 0.1 percentage point lower than in January.

Excluding motor vehicles, retail sales grew 9.4 per cent from the year-ago period, and posted a sequential gain – up 1.8 per cent on a month-on-month, seasonally adjusted basis.

A key contributing factor for the “surge” in February’s retail sales was the CNY festive period, which was celebrated in February this year, as opposed to January last year, noted OCBC chief economist Selena Ling.

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“The 30-day visa-free travel arrangement between China and Singapore from Feb 9 also meant the Republic welcomed more Chinese visitors during this period,” she added.

In February, China overtook Indonesia to become the top source of visitors to the Republic, with tourist arrivals from China accounting for 22.7 per cent of the 1.44 million visitors recorded.

Eleven of the 14 retail sales categories recorded year-on-year growth in February.

Food and alcohol sales, in particular, were the fastest-growing category on a year-on-year basis, noted DBS economist Chua Han Teng. “The improvement was likely driven by both local and foreign tourist spending amid the festive mood,” Chua said.

On a month-on-month, seasonally adjusted basis, sales grew for 10 of the categories. Furniture and household equipment recorded the largest increase of 16.6 per cent; food and alcohol posted the largest sequential fall of 13.3 per cent.

Sales of food and beverage (F&B) services rose 14.7 per cent year on year, reversing from the 5.5 per cent drop in January. Sequentially, sales increased 7.9 per cent on a monthly, seasonally adjusted basis, extending from the previous month’s 0.4 per cent gain.

All F&B categories logged year-on-year gains, with food caterers (39.5 per cent) and restaurants (20.5 per cent) posting the largest advances.

This was followed by fast food outlets (9 per cent) and cafes, food courts and other eating places (5.2 per cent).