Retail sales in Singapore will continue to see modest growth in December as well as in the first quarter of 2022 on the back of increased mobility, according to a report by RHB.
RHB said retail sales in Singapore have been on an uptrend since July based on the three-month moving average.
“Retail sales are anticipated to rise in the year ahead as domestic demand continues to recover amid the pick-up in overall business activities. This is also aided by the expected improvement in the labor market in 2022 as the unemployment rate steadily falls, with the latest monthly print of 2.6% for October,” RHB said.
It said that fluctuations in sequential readings may occur due to year-end demand increase, particularly on spending in the discretionary industries.
The Department of Statistics Singapore reported that retail sales for November 2021 inched up 1.9% year-on-year (YoY), reaching a value of $3.7b, whilst food and beverage sales climber 0.6% YoY in November 2021 reaching $706m.
Travel restrictions in Singapore are also expected to occur gradually in 2022 which will increase visitor arrivals and support spending on retail sales especially in the second half of the year, RHB said.
However, it said that the new strains of the coronavirus may slightly delay the re-opening of borders and easing of restrictions.