Singapore retail sales up 2% in September, propped up by strong motor sales

PROPPED up by strong motor sales, Singapore’s retail sales grew 2 per cent year on year in September – extending the revised 0.7 per cent growth posted in the month before. Excluding motor vehicles, retail sales slipped 1.4 per cent from the year-ago period, and posted a sequential drop – down 0.2 per cent on a month-on-month, seasonally adjusted basis. Still, the reading surpassed estimates by private-sector economists, who had expected September’s retail sales to grow 1.8 per cent year on year in a Bloomberg poll.

On a month-on-month, seasonally adjusted basis, retail sales gained 0.4 per cent, reversing from August’s revised 0.8 per cent expansion, Department of Statistics data on Tuesday (Nov 5) showed. September’s total retail sales stood at S$4 billion, with online sales accounting for 13.8 per cent.

Noting that the year-on-year growth momentum for retail sales picked up in the third quarter compared to the previous quarter, DBS economist Chua Han Teng said: “We see hope for this positive trend to continue in the final months of 2024.”

Year on year, six of the 14 retail sales categories recorded growth in September. Motor vehicles recorded the largest increase of 29.6 per cent – which Chua noted was the fastest pace of growth for the category since January 2024. Beyond favourable base effects, growth was supported by an increase in the certificate of entitlement quota compared to the previous year, as well as firm car demand, he pointed out.

Wearing apparel and footwear posted the largest fall of 9.3 per cent, followed by department stores at 6.8 per cent. Chua attributed the decline in sales of discretionary items to the strong Singapore dollar, which has likely incentivised locals to divert their spending and purchase such portable goods when abroad.

On a month-on-month, seasonally adjusted basis, sales grew for seven of the categories.

Sales of food and beverage (F&B) services rose 1.6 per cent year on year, extending the 4.4 per cent expansion posted in August. It was down 2.1 per cent on a monthly seasonally adjusted basis, compared with the 3.6 per cent growth the previous month.

On the year, growth was recorded across food caterers (19.1 per cent) and cafes, food courts and other eating places (2.4 per cent). Conversely, fast-food outlets (-4.1 per cent) and restaurants (-1 per cent) posted drops. All four categories were down on a seasonally adjusted, month-on-month basis: