SINGAPORE - Retail sales grew 2.3 per cent year on year in June, driven by the sales of motor vehicles, data from the Department of Statistics released on Aug 5.

This was above the median estimate of 2 per cent growth from private-sector economists polled by Bloomberg.

June’s growth extends the 1.3 per cent growth in May 2025.

Excluding motor vehicles, retail sales increased 0.4 per cent in June, compared with the flat growth in May 2025.

The estimated total retail sales value in June 2025 was $4 billion. Of this, an estimated 13.6 per cent were from online retail sales, higher than the 12.3 per cent recorded in the previous month.

Excluding motor vehicles, the total retail sales value was about $3.3 billion, of which 16.2 per cent were from online retail sales.

Online retail sales made up 56.2 per cent of the total sales of computer and telecommunications equipment, 32.8 per cent of the furniture and household equipment and 12.3 per cent of the supermarkets and hypermarkets industries.

Within the retail trade sector, more than half of the industries recorded year-on-year growth in sales in June 2025.

The motor vehicle industry saw a 14.6 per cent increase, which corresponded to a higher certificate of entitlement quota.

Sales of computer and telecommunications equipment increased by 7.3 per cent, optical goods and books rose by 5.9 per cent and recreational goods increased by 5.6 per cent.

In contrast, petrol service stations recorded year-on-year declines in sales of 5.9 per cent while retailers of food and alcohol recorded a decline of 5.2 per cent in June 2025.

A muted outlook for Singapore’s retail sales is anticipated over the coming months, said DBS Bank senior economist Chua Han Teng.

“The domestic labour market will face challenges from external headwinds impacting the global and Singapore economies, induced by high US tariffs and associated business uncertainties,” he said.

With businesses remaining cautious about hiring intentions and wage increases in the coming months due to elevated economic uncertainty, consumers are also likely to be mindful and selective with their spending in these uncertain times, he said.

OCBC Bank chief economist Selena Ling said that with the strength of the Singdollar, it is not unexpected that more Singaporean households headed overseas to take advantage of improved purchasing power.

Sales of food and beverage services increased by 0.1 per cent in June 2025 on a year-on-year basis, following a 1 per cent growth in May 2025.

On a seasonally adjusted basis, sales of food and beverage services fell 1.5 per cent in June 2025, compared to the previous month.

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The total sales value of food and beverage services in June 2025 was estimated at $962 million. Of this, an estimated 26.7 per cent were from online sales, compared with the 26.6 per cent recorded in May 2025.

Within the food and beverage services sector, food caterers registered growth in sales of 18.5 per cent while fast-food outlets’ sales rose 2.3 per cent in June.

In contrast, turnover of restaurants fell by 5.6 per cent while cafes, foodcourts and other eating places fell by 0.1 per cent during this period.

The latest business expectations survey for the services sector showed that a net 8 per cent of food and beverage services were optimistic about the outlook for the second half of 2025, possibly attributable to upcoming concerts and sporting events like F1 as well as the year-end festive season, said Ms Ling.

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