Singapore Retail sales index up 5.6% in March
By OH BOON PING
Excluding motor vehicles, overall sales volume rose by 6.1 per cent.
The strong growth was partly attributed to higher prices, but at constant prices the volume of retail sales actually declined marginally from a year ago, says the DOS.
Total retail sales value in March was estimated at $2.89 billion, compared with February’s $2.59 billion, with almost all retail sectors reporting higher turnover year on year.
For example, sales of supermarket goods, furniture & household equipment, department store items, optical goods & books, watches & jewellery and telecommunications apparatuses & computers in March this year continued to grow at 13.6 per cent to 16.7 per cent.
However, the motor-vehicle segment reported a decline of 8.1 per cent, continuing its downward trend since October 2007.
As for restaurants, receipts fell 1.8 per cent from the previous year, even though sales of fast-food outlets and food caterers rose during the period.
For example, turnover at fast-food restaurants rose by 1.6 per cent while revenue of food caterers and other eating places increased by 8.9 per cent and 6 per cent respectively.
The DOS said the increase was partly due to higher food prices. ‘After removing the price effect, the volume of catering trade declined by 3.1 per cent.’
In a report, HSBC economist Prakriti Sofat noted the contraction in motor-vehicle sales, but added that as certificate of entitlement (COE) premiums fall ‘to the lowest level in around a year, motor-vehicle sales will probably see a bounce in the months ahead’.
Looking ahead, the economist believes that retail spending here should remain firm.
‘Singaporeans got their first ‘growth dividend’ at the end of April (with the second in October) which, together with tax rebates, healthy job gains and historically low interest rates, suggests that households should let loose the purse strings,’ Ms Sofat said.
Source : Business Times - 16 May 2008
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