Singapore’s retail sales increased modestly in August, rising 0.7% year-on-year, according to data released by the Singapore Department of Statistics on October 5. This follows a 1.3% growth in July. When excluding motor vehicles, parts, and accessories, retail sales expanded by a stronger 1.6%, up from 1.3% in the previous month.
On a seasonally adjusted month-on-month basis, total retail sales declined by 1% in August. Excluding motor vehicles and related products, sales edged up 0.6%. The total value of retail sales reached approximately S$4.5 billion, with online transactions accounting for 15.7%—an increase from 15.2% in July.
Among retail sectors, cosmetics, toiletries, and medical goods demonstrated the most significant growth, with sales rising 11.2%, supported mainly by increased demand for cosmetics and toiletries. The computer and telecommunications equipment sector followed closely, posting a 10.7% increase, largely driven by higher mobile phone sales. Other segments showing year-on-year gains included recreational goods, which grew 4.3%, and petrol service stations, up 3.2%.
Conversely, the motor vehicles, parts, and accessories segment registered a 4.6% decline in sales, while sales of watches and jewellery fell 2.7%.
The food and beverage (F&B) services sector experienced a continued downturn, with sales dropping 1.6% year-on-year in August, extending the 1.9% decline recorded in July. Total F&B sales were estimated at S$1.7 billion, with online sales making up 20.6% of the total, slightly lower than 20.9% in July. Within this sector, cafes reported the steepest sales decline at 5.3%, followed by foodcourts and other eateries with a 4.8% drop. Restaurant sales decreased by 2.1%, while fast-food outlets and food caterers saw increases of 7.8% and 2.9%, respectively.
Economists observed mixed signals in the broader economic environment. Maybank economist Chua Hak Bin attributed the modest retail performance to more cautious consumer behavior amid a softening job market, volatility in global stock markets, and broader economic uncertainty, despite the ongoing artificial intelligence boom in Singapore.
DBS Bank senior economist Chua Han Tieng noted that retail sales may remain supported in the near term by stable yet mixed labor market conditions, increased tourist spending tied to upcoming large-scale events such as the Formula 1 Grand Prix and major concerts, as well as government support measures. However, he cautioned that rising inflation could erode purchasing power and encourage more cautious consumer spending, potentially constraining retail growth.
OCBC Group chief economist Selena Ling highlighted uncertainties related to adverse weather conditions, particularly haze, which could negatively affect outdoor-related activities including leisure, sports, and F&B sectors in the short term. She also pointed out that this situation might boost demand for air purifiers and masks.
Overall, Singapore’s retail sector shows areas of growth amid challenges, with a cautious consumer outlook shaping spending patterns as the economy navigates shifting domestic and external conditions.