Retail prospects sour after Great Singapore Sale

A net weighted balance of 6% of firms in the retail trade industry forecasts a drop in business volume for the next three months.

"This is mainly due to a decrease in promotional activities as compared to the previous quarter which coincided with the Great Singapore Sale," said the Singapore Economic Development Board.

Hiring continues though despite the depressed sentiment as firms within the industry expect to increase recruitment during the period due to the opening of new stores.

Retail posted the least optimistic outlook in the services sector, which overall saw a net weighted balance of 7% of firms forecasting growth in operating receipts for the third quarter of 2012 over the preceding quarter. Real estate was the only other cluster with a negative outlook in operating receipts, with a net 3% expecting a decline in business.

Meanwhile, accommodations led the bullish forecast with a net weighted balance of 45% of firms predicting higher receipts in view of the upcoming Formula One Grand Prix in Sep 2012.