Monday July 21, 2008

Singapore retail sales growth slows as inflation hurts spending

This article belongs to the Singapore stagflation watch story arc.

bloomberg.com :

Singapore's retail sales growth slowed in May 2008 as consumers bought fewer cars and spent less on furniture amid the fastest inflation in 26 years, spurred by surging commodity and energy costs. The retail sales index gained 4.8% from a year earlier, after climbing 7.5% in April, the Statistics Department said today [15 Jul 2008]. Faster inflation has left consumers with less to spend, hurting an economy that expanded at the slowest pace in five years in the second quarter. Vehicle sales in May declined 1.9% from the same month in 2007. From April, auto sales dropped 3.4%. Oil prices have doubled in the past year, reaching a record $147.27 per barrel on July 11. Prices of grains such as rice and wheat have also hit records, increasing costs for consumers.

- Notice how they are once again commenting on the second order here, when they talk about the rate of retail sales growth slowing from 7.5% in Apr to 4.8% in May, year-on-year. The figures are starting to turn toward negative territory. Now the question that remains is not whether we are heading into a stagflationary recession, but how long we will remain there, and what we can do about it.

See also :

1. Singapore industrial production unexpectedly dropped in Apr 2008 on drugs, electronics
2. Singapore stagflation : May 2008 exports fell most in 17 months; inflation at 26-year highs
3. Singapore GDP shrinks 6.6% in Q2 2008 as stagflation continues

(2008-07-21 17:09:15 SGT) [Biz] Permalink

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