Motor vehicle sales in July boost retail sales

The Department of Statistics has revealed on Monday that retail sales in Singapore rose by 5.5 percent in July compared to the same period last year, driven largely by the sales of motor vehicles. Excluding motor vehicles, retail sales fell 0.4 percent in July, down from that of last July.

When compared month on month, retail sales (seasonally adjusted) fell marginally by 0.2 percent in July over June, while motor vehicle sales rose by 4.8 percent. With motor vehicles removed from the equation, retail sales slid by 1.3 percent, reported The Business Times.

Retailers of motor vehicles recorded a sales increase of 41 percent in July 2014 over that of July 2013. This can be attributed to lower sales of motor vehicles then (July 2013), as the temporary lifting of loan restrictions on the purchase of pre-existing stock of used cars came to an end, reported The Straits Times.

The total retail sales value for July this year was estimated at $3.2 billion, higher than the $3 billion from July last year.

Retail sales growth in August is anticipated to be strengthened by robust motor vehicle sales as well as a pick up in tourism, especially from markets such as China, Hong Kong and Taiwan, highlighted OCBC Bank Economist Barnabas Gan.