Retail sales in September totaled S$2035 million (US$1112 million), compared to $2267 million in the previous month, the statistics department said in a statement.

The retail index was 8.7 percent down on September a year ago.

"(The) majority of the retailers reported lower turnover," the statement said.

"In particular, dealers in motor vehicles and retailers of wearing apparel and footwear encountered double-digit declines in their sales."

Excluding motor vehicles, retail sales were down 6.5 percent in September month-on-month.

Sales of books, computers, recreational goods, optical and telecommunications equipment plunged eight to nine percent.

But medical goods and toiletries rose 7.7 percent, and food and beverage sales were up 3.2 percent.

The figures showed Singaporeans were cutting back on fast food, but they were hitting the restaurants which enjoyed higher turnovers of 6.1 percent.

The retail figures were released on the eve of the October non-oil domestic export data, closely watched for its insight into the island's economic health. The September trade figures showed a record 30.7 percent dive on the same month last year.

Also coming out Friday will be the official gross domestic product figures for the third quarter. Flash estimates last month showed a 5.6-percent contraction.

While once flourishing Singapore boasted a near 10-percent economic growth last year, the best government estimates are for a three-percent contraction this year.

The trade-dependent island, one of Asia's most affluent societies, has fallen victim in particular to the severe slump in demand for electronics, the cornerstone of its export policy.

Job losses are expected to total 40,000 by the end of next year and many companies have already slashed or scrapped bonuses, cut salaries, and imposed a freeze on hiring.

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