SINGAPORE – Takings on the until in Singapore grew at a quicker tempo in Could, helped by a low year-ago base and the continued increase from vacationer spending after journey restrictions had been eased.
Retail gross sales surged 17.8 per cent 12 months on 12 months, extending the 12.1 per cent development in April, in accordance with figures launched by the Division of Statistics (SingStat) on Tuesday (July 5).
This exceeded the expectations of analysts polled by Bloomberg, who projected gross sales to develop by 13.4 per cent.
Excluding motor autos, development was even stronger, coming in at 22.6 per cent.
“The year-on-year enhance in retail gross sales in Could 2022 was primarily attributed to the low base in Could 2021 when measures equivalent to worldwide journey restrictions had been in place,” mentioned SingStat in a press assertion.
Consultants mentioned this development is anticipated to proceed, however could be moderated on account of larger costs and inflation.
RHB senior economist Barnabas Gan mentioned: “The retail gross sales momentum will probably keep buoyed into the third quarter as Asia strikes on from Covid-19-related fears. Tourism ranges have been choosing up throughout Asian economies, together with Singapore.”
He added that the tight labour market and reopening of Asia’s borders ought to assist spending. “On the again of home demand and tourism-led spending, we predict retail gross sales from an index perspective will probably return to pre-Covid ranges by the tip of this 12 months,” he mentioned.
However the vivid outlook could be muddied by any surprising worsening of the Russia-Ukraine battle and China’s financial slowdown, he famous.
Maybank Kim Eng economist Lee Ju Ye added that the surge in inflation and rising mortgage charges will probably end in some belt tightening by customers.
“Specifically, gross sales of discretionary objects equivalent to watches and jewelry and leisure items often is the most affected,” she mentioned.
Shoppers are additionally anticipated to lean in the direction of lower-priced objects as prices go up, added Nationwide College of Singapore enterprise professor Lawrence Loh.
“Within the close to time period, retail might face a double whammy of moderation in demand and escalation of prices.”
Throughout the retail commerce sector, most industries recorded year-on-year development in gross sales in Could.
Discretionary industries equivalent to carrying attire and footwear noticed gross sales balloon by 98.2 per cent as a result of low base in Could 2021, when there was decrease vacationer spending on account of journey curbs.
Department shops, which had been onerous hit by Covid-19 restrictions, additionally noticed gross sales bounce by 73.1 per cent.
This was adopted by retailers of watches and jewelry, which recorded larger gross sales of 60.7 per cent.
Retailers of meals and alcohol noticed gross sales rise by 47.3 per cent, whereas petrol service stations recorded gross sales will increase of 45.8 per cent.
In distinction, gross sales of motor autos fell 10.2 per cent.
Supermarkets and hypermarkets recorded declines in gross sales of 10.3 per cent, whereas minimarts and comfort shops noticed gross sales fall by 4.8 per cent.
This was as a result of larger demand for groceries in Could 2021 when extra folks stayed residence throughout the Part 2 (Heightened Alert) interval, SingStat famous.