Singapore’s retail sales experienced a decline of 1.4% month-on-month in September, according to a report by UOB Global Economics and Markets Research. This downturn follows a robust performance in July and August, where sales grew by 3.9% and 0.7% respectively. The contraction was observed across 10 out of 14 retail subcategories, with significant drops in sales of computers and telecommunications equipment, petrol service stations, and supermarkets.
The report highlights that the moderation in retail sales aligns with a slowdown in tourist arrivals, which reached 86% of 2019 levels in September, down from 93% in August. Additionally, there was an increase in outbound air departures by Singapore residents, suggesting a shift in spending abroad. The initial boost from the SG60 vouchers, distributed in July, appears to be waning, as categories like supermarkets and convenience stores saw consecutive monthly declines.
Despite the September dip, retail sales for the third quarter of 2025 showed a year-on-year increase of 4.2%, a significant improvement from the 1.2% rise in the second quarter. Looking ahead, UOB anticipates a potential boost in October retail sales due to events like the Formula 1 Singapore Grand Prix and increased Chinese tourist arrivals during China’s October Golden Week holiday. However, the report cautions that wage growth may moderate, potentially leading to more restrained consumer spending.
