Singapore: Retail sales surprise on the upside
Retail sales managed to grow much quicker than expected
| 8.7% |
March retail sales growth (YoY) |
| Higher than expected | |
March retail sales rise 8.7%
Singapore’s retail sales grew much stronger than anticipated, posting an 8.7% increase. The market consensus pegged retail sales growth at just 0.7% with faster inflation expected to dent some demand, but sales remained brisk. Retail sales ex-auto grew 13.4%, helped by a strong showing for online sales, which grew 14.9% year-on-year.
Surprise pickup in retail sales driven in part by online purchases
Positive surprise but concerns linger
Today’s upside surprise suggests that 1Q GDP could be revised higher as sales remained robust despite a pickup in inflation. However, with inflation expected to accelerate in the near term (core inflation could hit 3.5%) we believe that retail sales growth may eventually lose some momentum. Furthermore, a projected slowdown in global trade could also weigh on consumer sentiment, yet another factor that could dampen retail sales in the near term.
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
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