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16-11-2012, 07:53 AM
The Straits Times
www.straitstimes.com
Published on Nov 16, 2012
Slow sales of cars, luxury goods drag down retail sector
Supermarket trade, sales of tech goods remain robust
By Magdalen Ng
SLOWING sales of cars and luxury goods combined to pull down the retail sector in September.
The index that tracks spending was 0.5 per cent lower compared with August, reversing the 1 per cent expansion from July to August.
The numbers were a bit better on a year-on-year basis: The index expanded 2.5 per cent in September over the same month last year, but this was still below the market consensus of 3.9 per cent.
If motor vehicle sales were stripped out, year-on-year growth was 3.9 per cent, according to the Department of Statistics yesterday.
Citigroup economist Kit Wei Zheng noted that the car market was likely hit by poor sentiment, reflected in the first COE bidding exercise in September.
He added that the Straits Times Index fell 0.3 per cent from August to September.
Motor vehicle sales declined 7.2 per cent in September from August, reversing the 2.6 per cent increase in August over July.
Retail sales excluding motor vehicles increased 1.4 per cent in September from August on the back of robust supermarket trade and technology goods sales.
Barclays economist Leong Wai Ho noted that the month-on-month increase was despite the Formula One race in September, which normally affects sales due to the closure of some roads and shops.
He added that the strong tech sales were likely due to the Comex 2012 tech fair and the launch of Apple's iPhone5.
"While a tight labour market serves as a support for consumption of basic, daily use goods, it appears that consumers are still shying away from purchases of luxury goods," he said.
The sales of watches and jewellery contracted 2.7 per cent in September from August, while sales of food and beverage services declined 0.8 per cent over the same time.
Compared to a year ago, sales of food and beverage services were up 3.7 per cent in September.
The decline in retail sales suggests that a preliminary estimate of the third quarter's gross domestic product will be revised down when it is released today.
Mr Kit said: "The soft sales excluding motor vehicles may be indicative of weaker tourist arrivals, and the stronger Singdollar may be hurting sales of small-ticket items."
songyuan@sph.com.sg
www.straitstimes.com
Published on Nov 16, 2012
Slow sales of cars, luxury goods drag down retail sector
Supermarket trade, sales of tech goods remain robust
By Magdalen Ng
SLOWING sales of cars and luxury goods combined to pull down the retail sector in September.
The index that tracks spending was 0.5 per cent lower compared with August, reversing the 1 per cent expansion from July to August.
The numbers were a bit better on a year-on-year basis: The index expanded 2.5 per cent in September over the same month last year, but this was still below the market consensus of 3.9 per cent.
If motor vehicle sales were stripped out, year-on-year growth was 3.9 per cent, according to the Department of Statistics yesterday.
Citigroup economist Kit Wei Zheng noted that the car market was likely hit by poor sentiment, reflected in the first COE bidding exercise in September.
He added that the Straits Times Index fell 0.3 per cent from August to September.
Motor vehicle sales declined 7.2 per cent in September from August, reversing the 2.6 per cent increase in August over July.
Retail sales excluding motor vehicles increased 1.4 per cent in September from August on the back of robust supermarket trade and technology goods sales.
Barclays economist Leong Wai Ho noted that the month-on-month increase was despite the Formula One race in September, which normally affects sales due to the closure of some roads and shops.
He added that the strong tech sales were likely due to the Comex 2012 tech fair and the launch of Apple's iPhone5.
"While a tight labour market serves as a support for consumption of basic, daily use goods, it appears that consumers are still shying away from purchases of luxury goods," he said.
The sales of watches and jewellery contracted 2.7 per cent in September from August, while sales of food and beverage services declined 0.8 per cent over the same time.
Compared to a year ago, sales of food and beverage services were up 3.7 per cent in September.
The decline in retail sales suggests that a preliminary estimate of the third quarter's gross domestic product will be revised down when it is released today.
Mr Kit said: "The soft sales excluding motor vehicles may be indicative of weaker tourist arrivals, and the stronger Singdollar may be hurting sales of small-ticket items."
songyuan@sph.com.sg
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