Singapore retail sales growth is forecast to slow to 3% this year from 4% in H1 as weaker tourism, rising job cuts, and higher costs curb consumer spending, RHB said.

Weaker visitor arrivals, rising retrenchments, and higher costs are expected to slow Singapore’s retail sales growth to 3% this year, from the 4% expansion recorded in the first half, RHB said. The forecast comes as retail sales rose 4% year on year (YoY) in June, accelerating from a downwardly revised 2.9% increase in May. However, RHB said eight of the sector’s 14 retail segments recorded month-on-month declines, indicating that underlying momentum was beginning to soften despite annual growth across 10 segments. June’s 1% seasonally adjusted monthly increase in retail sales was led by motor vehicles, supermarkets, and food and alcohol. Motor vehicle sales rose 5.9% month on month, whilst supermarket and food and alcohol sales increased 3.7% and 2.4%, respectively.