Vehicle sector helps drive up retail sales

The struggling retail industry continued to languish in September, with overall takings boosted mainly by strong car sales, reported The Straits Times.

Retail sales rose 4.6 percent over September last year, but if vehicles are excluded to give a better indicator of underlying consumer demand, turnover would have slipped 1.4 percent.

The car market has been getting a lift from people who bought vehicles between 2004 and 2008, when the supply of certificates of entitlement was high. Car showrooms sold 48.3 percent more vehicles in September than the same month last year, according to the Statistics Department. 

OCBC economist Selena Ling noted that sales of discretionary items such as recreational goods, watches and clothing were weak, and the retail industry continues to suffer from muted consumer sentiment amid a lacklustre economy.