Singapore’s retail sales up 0.7% in August, led by cosmetics and telecom equipment sectors

SINGAPORE – Singapore’s retail sales inched up 0.7% year on year in August 2026, following July’s 1.3% growth, according to data from the Singapore Department of Statistics (SingStat).

In a release on Oct 5, SingStat said retail sales excluding motor vehicles, parts and accessories rose 1.6% year on year, compared with 1.3% growth in July.

On a month-on-month and seasonally adjusted basis, retail sales fell 1% in August. Excluding motor vehicles, parts and accessories, sales rose 0.6%.

Total retail sales were estimated at $4.5 billion in August, with online transactions accounting for 15.7% of the total, up from 15.2% in July.

Within the retail trade sector, the majority of industries recorded year-on-year growth in sales in August. 

Cosmetics, toiletries and medical goods saw the strongest year-on-year growth, with sales going up by 11.2%, partly driven by higher sales of cosmetics and toiletries.

This was closely followed by the computer and telecommunications equipment industry, where sales grew by 10.7%, driven by higher mobile phone sales.

Other industries that recorded year-on-year increases include recreational goods, where sales rose 4.3% and petrol service stations, where sales climbed 3.2%.

In contrast, motor vehicles, parts and accessories recorded a year-on-year decline in sales of 4.6%, while retailers of watches and jewellery saw a dip in sales of 2.7% in August.

The Singapore economy is running hot on the artificial intelligence boom, but consumer spending and the job market appear to be cooling, said Maybank economist Chua Hak Bin.

Consumers may be turning more cautious on the back of a softer job market, the pullback in global stock markets and the uncertain outlook, he said.

The SingStat data also showed that food and beverage services sales fell by 1.6% year on year in August, extending July’s 1.9% decline.

The total F&B sales were estimated at $1.7 billion, with online transactions accounting for 20.6% of the total, down from 20.9% in July.

Within the F&B services sector, cafes saw the biggest drop in year-on-year sales of 5.3%, while foodcourts and other eating places recorded year-on-year fall in sales of 4.8% in August. Restaurant sales also decreased by 2.1%.

In contrast, sales at fast-food outlets rose by 7.8%, while those of food caterers increased by 2.9%.

Retail sales should be supported in the coming months by still stable, albeit mixed, labour market conditions; higher tourist spending associated with large-scale events such as the Formula 1 Grand Prix and major concerts; and ongoing government support measures, said DBS Bank senior economist Chua Han Teng.

“While inflation is not accelerating, it has been rising and is likely to somewhat erode consumers’ purchasing power, which could prompt households to exercise greater prudence in their spending and, in turn, limit the pace of retail sales activity,” he added.

Selena Ling, chief economist and head of OCBC Group Research, said the outlook is hazy, as the anticipated impact on outdoor activities – including leisure, sports and F&B – is likely negative in the near term.

“While we do have the Singapore International Energy Week and F1 in October, the question remains how prolonged the haze situation is going to be. On the flip side, sales of air purifiers and masks should improve,” she added.