SINGAPORE'S retail sales rose in August, up a seasonally adjusted 0.9 per cent from July, though a sharp drop in car sales weighed on overall performance, data showed on Wednesday.

The rise in August after adjusting for seasonal patterns comes after retail sales were unchanged in July compared to the previous month. From a year ago, the August index rose 4.2 per cent, lower than the 11.8 percent rise in July.

Economists had forecast August's retail sales to slow as weaker economic growth and a softening labour market weigh on consumer spending.

Excluding motor vehicle sales, the August index was 3.8 per cent higher after adjustment for seasonal patterns, following a 2.4 per cent rise in July, the Department of Statistics said.

Retail-sale volumes were unchanged from a year earlier after removing the effect of higher prices. Adjusted for seasonal factors, sales in August rose 0.9 per cent from July.

Vehicle sales in August fell 12.9 per cent from the same month in 2007. From July, auto sales plunged 20.4 per cent, without adjusting for seasonal factors.

Purchases of recreational goods declined 6.8 per cent in August from a year earlier, and fell 3.6 per cent from July. -- REUTERS