Singapore retail sales grow for fourth straight month but at slower pace

The estimated total retail sales value in Singapore in May stood at $4.5 billion.

SINGAPORE – Consumers continued to spend more in May than they did a year earlier, extending retail sales growth to a fourth straight month, although the pace of growth slowed from April and spending weakened from the previous month.

Retail sales rose 3 per cent year on year to an estimated $4.5 billion in May, down from the 5.4 per cent growth recorded in April, according to data released by the Singapore Department of Statistics (SingStat) on July 6.

The slower pace of growth comes after retail sales accelerated in April, although consumer spending remained supported by Singapore’s resilient labour market, DBS Bank senior economist Chua Han Teng told The Straits Times.

“Still-resilient and healthy labour market conditions, as reflected in low unemployment and continued household income growth, supported retail sales despite uncertainty stemming from the Middle East conflict during the second quarter,” he said.

Excluding motor vehicles, parts and accessories, retail sales grew 3.7 per cent year on year, moderating from the 4.5 per cent increase recorded in April.

On a month-on-month basis, retail sales in May were weaker than in April, falling 2.3 per cent after accounting for seasonal factors. Excluding motor vehicles, parts and accessories, May sales declined 1.8 per cent from April.

Online transactions accounted for 15.1 per cent of total retail sales, up from 14.7 per cent in April.

Most retail industries posted year-on-year growth, led by recreational goods, where sales jumped 23.6 per cent. Watch and jewellery sales rose 11.7 per cent, while petrol service stations recorded a 9.5 per cent increase, mainly because of higher petrol prices.

Chua said that stronger sales of recreational goods as well as watches and jewellery reflected resilient consumer spending despite broader economic uncertainty during the second quarter.

The increase at petrol service stations marked the third consecutive month of growth, although he expects the pace to moderate as oil prices ease following the cooling of US-Iran tensions since mid-June.

“Growth should moderate as petrol prices ease following the de-escalation of US-Iran tensions since mid-June,” he said.