Singapore retail sales stumble in October

In October, retail sales in Singapore fell, which is the latest indication that the economy is likely to contract for the third consecutive quarter, as a reduction in domestic consumer demand coupled with a drop in both manufacturing and exports have left the nation’s economy in a difficult position.

Retail sales have fallen by 3.6 percent compared to last month whilst the labour market is also struggling.

Unemployment has stayed steady at 2.2 percent although in the last two quarters, only 55,700 jobs have been added to the economy.

According to Irvin Seah, an economist with DBS bank in Singapore, retail sales are expected to fall further as the softening of the labour market will further impact on consumer spending.

Last month the government announced that the economy had fallen into recession with the economy shrinking 6.8 percent from the previous quarter.

Gross domestic product has fallen for the second consecutive quarter as demand has dropped due to the reduced demand from the US and Europe for consumer electronics and pharmaceuticals.

Car sales in October have fallen by 18.7 percent from the same month in 2007, whilst footwear is down by 12 percent and consumers are reigning in their spending.

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