Surge in Singaporean retail spending a good sign!

Singapore retail sales surged by 11.1 per cent year on year in 2021, reversing the previous year’s 15.3 per cent decline and snapping a 3-year losing streak, says The Business Times.

Singapore’s consumers increased their spending steadily as retail sales accelerated to +6.7%yoy in Dec-21 (Nov-21: +2.2%yoy).

“Looking ahead, we opine Singapore’s household consumption activities will continue growing in the upcoming months bolstered by the rapid administration of the vaccination coupled with the relaxation of the stringent restrictions.

“Nevertheless, the soaring consumer prices with the recent headline CPI inflation rising to a near 9-year high of +4%yoy in Dec-21 poses a downside risk to Singapore’s near-term domestic consumption activities” says MIDF.

The stronger consumer spending was underpinned by the year-end festive shopping spree as well as the easing of the Covid-19 curbs.

Robust

The increased purchases in cosmetics & medicinal goods; food & alcohol; petrol service; wearing apparel, and watches & jewelry, among others, contributed to the higher sales during the month.

On a month-on-month basis, the growth in retail sales eased to +2.3%mom in Dec-21 after gaining +2.8%mom in the prior month.

As for the whole year, Singapore’s retail spending rebounded robustly by +11.1% in 2021 (2020: -15.3%), registering an expansion for the first time since 2017.