Singapore retail sales rise 5.2% in August, with boost from CDC vouchers and tourism

Retail sales grew 5.2 per cent year on year in August, accelerating from July’s revised 4.6 per cent increase, data from the Department of Statistics released on Oct 3 showed.

- Rosalind Ang

The sector did better than expected, beating the 4.8 per cent growth forecast by analysts in a Bloomberg poll.

Encouraging retail sales numbers over two consecutive months - July and August - suggest that consumer sentiments and spending may be turning the corner after the softness in the first half, said Maybank economist Chua Hak Bin.

Stronger retail sales and tourism-related segments, including hotels, will help to partly cushion the blow from weaker exports in the third quarter, Dr Chua said.

Excluding cars and other vehicles, retail sales rose 4.6 per cent in August, more than the 3.9 per cent increase in July.

On a seasonally adjusted monthly basis, retail turnover grew by a smaller 0.5 per cent margin in August. Excluding motor vehicles, sales climbed 1.3 per cent month on month, against July’s 3.6 per cent growth.

Nine of the 14 retail industries saw year-on-year growth in sales:

• Supermarkets and hypermarkets: 8.7 per cent

• Motor vehicles: 8.9 per cent

• Cosmetics, toiletries and medical goods: 8.1 per cent

• Furniture and household equipment: 8.6 per cent

• Recreational goods: 9.9 per cent

• Watches and jewellery: 11.2 per cent