FX.co ★ Singapore Retail Sales Rise Sharply In May

Singapore's retail sales rose at a faster pace in May, largely driven by strong sales growth in industries such as wearing apparel and footwear, watches and jewelry, and department stores, data from the Department of Statistics showed on Tuesday.

Retail sales climbed 17.8 percent year-on-year in June, following a 12.1 percent increase in March.

Faster growth in retail sales in May was mainly due to the low base in May 2021 when measures such as international travel restrictions were in place, the agency said.

Excluding motor vehicles, retail sales grew 22.6 percent yearly in May, following a 17.4 percent rise in the preceding month.

Sales of wearing apparel and footwear grew the most, by 98.2 percent in May from a year ago. Sales at department stores logged a sharp growth of 73.1 percent.

Sales of food and alcohol were 47.3 percent higher compared to last year and those of watches and jewelry rose 60.7 percent. Sales of food and beverages alone grew 40.1 percent.

Sales at petrol service stations climbed 45.8 percent, while motor vehicle sales fell 10.2 percent.

On a monthly basis, retail sales increased a seasonally adjusted 1.8 percent in May, faster than the 1.1 percent rise in April.

ING economist Nicholas Mapa said the latest upside surprise suggests a robust GDP figure for the second quarter.

"Retail sales alongside fairly robust industrial production and non-oil domestic export have us retaining our 4.4 percent forecast for the second quarter," the economist said.

According to the economist, retail sales growth may eventually lose some momentum due to the expected acceleration in inflation.