Retail / news
Singapore retail growth seen easing to about 2% in H2 as living costs and softer jobs market bite
Singapore's retail growth is expected to moderate to roughly 2% in the second half of the year, with higher living costs and a cooling labour market weighing on consumer spending after July sales growth slowed sharply.
Retail sales in Singapore rose 1.5% year on year in July, a marked slowdown from the 4% expansion recorded in June, with receipts falling across several everyday spending categories. On a seasonally adjusted month-on-month basis, sales edged up 0.9%.
Analysts expect the pace of growth to ease further to around 2% in the second half, as households contend with higher living costs and remain cautious about discretionary purchases.
UOB said the softer July reading likely reflected cautious consumer sentiment set against soft labour market conditions, pointing to a spending mood that has cooled alongside the jobs picture.
Labour data reinforce that view. Retrenchments climbed to 4,500 in the second quarter from 3,830 in the first, while a Singapore National Employers Federation survey found that 54% of employers did not plan to increase headcount in 2027.
The same survey showed 51% of employers intended to moderate or freeze wages, up from 48% for 2026, a signal that household income growth may stay restrained in the months ahead.
Taken together, the figures suggest Singapore's retail sector faces a slower second half, with demand shaped by cost pressures and hiring caution rather than a broad rebound in consumption.