Singapore F&B and retail sectors face slowdown amid cautious spending

Singapore's food and beverage (F&B) services saw a 1.9% year-on-year decline in sales in July, with total sales estimated at $1.6 billion. While overall F&B revenue fell, fast-food outlets provided a notable exception, recording a 4.6% annual increase. In contrast, food courts and other eating places experienced a 6.6% decline, and cafes fell by 6.4%.

Simultaneously, the broader retail sector is facing headwinds. Retail sales growth slowed to 1.5% year-on-year in July, down from 4% in June. Analysts from UOB suggest this deceleration reflects cautious consumer sentiment driven by softer labor market conditions, noting that retrenchments rose to 4,500 in the second quarter.

Banking groups UOB and RHB expect retail momentum to moderate through the second half of the year. Factors contributing to this cautious outlook include higher living costs, energy and gas tariffs, and economic uncertainty, despite a significant increase in international visitor arrivals during July.