Singapore monthly retail sales dipped in June, reversing the increase in sales seen in May, as more locals travelled abroad during the school holiday period.
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Singapore retail sales contracted 0.6 percent to SGD 3.8 billion (USD 2.87 billion) in June compared to prior-year month, following 2.2 percent growth in May, according to the Department of Statistics data.
According to analysts, the decline is likely due to more residents travelling overseas during the school holidays, encouraged by the strong Singapore dollar when visiting other nations.
For inbound visitors, Singapore could also be a less appealing tourist destination, weighed down by higher prices and a strong exchange rate.
Some 12.1 percent on the June retail sales came from online shopping, higher than the 11.6 percent recorded in May.
By category, optical goods and books recorded the largest decrease of 12.5 percent, mainly due to lower sales of books, while the sales of wearing apparel and footwear fell by 10.1 percent, alongside mini-marts and convenience stores, which saw a decline of 7.1 percent.
On a positive note, motor vehicle sales rose by 19.5 percent, while food and alcohol sales grew 5.3 percent in sales in June.
Sales of food caterers increased 19.3 percent year on year in June, extending an 18.8 percent growth in May.
The revenue of cafes, food courts and other eating places rose 2.5 percent, and sales at restaurants increased 0.2 percent. Sales at fast-food outlets fell 4.9 percent.
Looking ahead, Singapore retail sales could be positively impacted by a return of Chinese tourists during the summer break in July and August, and the Singapore Grand Prix in September.