SINGAPORE’S retail sales rose 2.5 per cent year on year in November, reversing from the previous month’s 0.1 per cent decline. The food and alcohol, motor vehicles, as well as watches and jewellery segments had the highest growth rates.

On a month-on-month, seasonally adjusted basis, retail sales grew 0.5 per cent, reversing from the previous month’s 0.8 per cent fall, data from the Department of Statistics (SingStat) showed on Friday (Jan 5).

The value of November’s total retail sales was S$4.1 billion. Online sales accounted for 15.2 per cent of this, 2.1 percentage points higher than October’s 13.1 per cent.

This higher proportion was mainly due to increased online sales during year-end online shopping events such as Singles’ Day and Black Friday, SingStat said.

Excluding motor vehicles, retail sales rose 1.4 per cent from the year-ago period, but remained unchanged on a month-on-month, seasonally adjusted basis.

Eight out of the 14 retail sales categories saw year on year growth in November.

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DBS economist Chua Han Teng noted that for the second straight month, the worst-performing categories have been recreational goods as well as furniture and household equipment.

“The weakness likely continued to reflect some prudence in consumer discretionary spending amid cooling wage growth,” he said.

Singapore’s ongoing travel recovery, meanwhile, likely supported food and alcohol sales – despite a “modest pullback” in November’s international visitor arrivals, he added.

On a month-on-month, seasonally adjusted basis, sales grew for seven of the 14 categories. Motor vehicles recorded the largest increase of 5.6 per cent; optical goods and books posted the largest sequential fall of 8 per cent.

Chua expects that December’s retail sales will have been boosted by consumers front-loading purchases ahead of the goods and services tax hike at the start of January, as well as cash payouts from the government.

Sales of the food and beverage services industry rose 1.4 per cent year on year, extending the 2.4 per cent growth in October. But on a monthly, seasonally adjusted basis, sales fell 1 per cent.

Year-on-year declines were recorded for restaurants (minus 1.1 per cent) and fast-food outlets (minus 2.5 per cent). But sales rose for food caterers (11.9 per cent) as well as cafes, food courts and other eating places (3 per cent).