Singapore Retail Sales Fare Worse Than Expected Even as Tariffs Darken Outlook

Retail sales down 3.6% in February after perking up in previous month

- Sheila Chiang

Retail sales in Singapore fell more than expected in February, with analysts expecting negative fallout ahead from the latest US tariffs announced this week.

The impact on Singapore's economy from the Trump administration's sweeping tariffs could hurt consumer spending and confidence, especially if it leads to slower hiring and job losses, they said.

DBS Bank senior economist Chua Han Teng said: "Escalating global trade tensions could negatively impact Singapore's small and open economy, potentially softening employment conditions and consumer confidence, and weigh on household spending and retail sales."

Data from the Singapore Department of Statistics (SingStat) on April 4 showed retail sales slipped 3.6 per cent year on year in February - partly due to the timing of Chinese New Year.

It comes after retail sales rose 4.5 per cent in January on festive buys, reversing the 2.9 per cent drop in December.

"The decline in retail sales was partly due to Chinese New Year being celebrated in February last year, as opposed to January this year," SingStat said.

Still, February's drop was much worse than the 0.2 per cent dip forecast by analysts in a Bloomberg poll.