Singapore Retail Sales Growth Slows to 0.7 Percent in August

The Singapore Department of Statistics reported that retail sales grew 0.7 percent year-on-year in August, marking the weakest growth rate since February. This figure represents a significant slowdown from the 4.1 percent growth recorded in June and 1.3 percent in July. Total sales for the month were estimated between SG$3.8 billion and $4.5 billion.

On a seasonally adjusted month-on-month basis, total retail sales fell 1 percent. This decline was primarily driven by the motor vehicles, parts, and accessories sector, which saw a 4.6 percent year-on-year drop and a 9.5 percent monthly decline. When excluding the motor vehicle sector, annual retail sales growth improved to 1.6 percent, and monthly sales rose 0.6 percent from July.

Growth was led by cosmetics, toiletries, and medical goods, which rose 11.2 percent, followed by computer and telecommunications equipment at 10.7 percent, bolstered by higher mobile phone sales. Other gains occurred in recreational goods and petrol service stations. Conversely, sales of watches and jewellery declined 2.7 percent. Online retail sales remained a strong component, growing 15.7 percent annually and accounting for between 15.7 percent and 18.2 percent of total sales.

Food and beverage services sales fell 1.6 percent year-on-year to approximately $1.7 billion. While fast food outlets and catering showed growth, restaurants and cafes recorded decreases, continuing a downward trend from July.