Rebound in retail sales in October
By Fiona Chan
The 6 per cent increase in retail sales in October was the biggest monthly rise since February and a marked contrast to the 8 per cent fall seen in September. –ST FILE PHOTO
CONSUMERS started to ease open their wallets in October in response to a brightening economic outlook.
Retail sales during the month were 6 per cent higher than in September - the biggest monthly rise since February and a marked contrast to the 8 per cent fall seen in September.
‘Retail sales look to continue improving, in line with the economic recovery and better consumer sentiment,’ said UOB economist Chow Penn Nee.
‘Job losses have also been relatively tame, which will bolster consumer spending.’
However, despite October’s uptick, retail sales are 4.4 per cent lower than they were in October last year, according to figures released by the Department of Statistics yesterday.
But this year-on-year drop is the smallest in 10 months, and much less than the 12 per cent plunge in September.
After falling year-on-year for 13 straight months - starting from October last year when the financial crisis took hold - sales may finally turn positive early next year, Ms Chow believed.
‘We might see an on-year increase in January or February next year, due to the low base effect,’ she said.
Car sales were up sharply in October, with showrooms selling 8.1 per cent more vehicles than they did in September. Without the car sector, overall retail sales would have dipped by 1.9 per cent, instead of rising 6 per cent.
The strong car showing is likely to be a blip rather than the start of a sustainable upward trend, said Ms Chow.
She said consumers may have rushed to buy vehicles in October due to the Government’s announcement of a reduction in the supply of Certificates of Entitlement (COEs) in September.
Retailers of food and beverages also fared well in October compared with September, with an 8.2 per cent jump in sales.
Department stores did almost as well, logging a 7.2 per cent sales increase for the period.
Retailers of watches and jewellery saw a 7.5 per cent hike in sales, while those selling telecommunications gadgets and computers sold 5.3 per cent more.
Supermarket saw their sales fall in October - by 3.1 per cent - while provision shop sales dropped 1.7 per cent.
Retailers of recreational goods and furniture and household equipment were similarly hit, with sales decreasing by between 2.5 and 4.3 per cent.
Source : Straits Times - 16 December 2009
Buy Sell Rent invest In Singapore Property Real Estate
MINDY YONG
( +65 ) 91002985
mindy@mindyyong.com
JTC looks for external ideas to boost land use »« Tampines site gets top bid of $302m
