SingStat Food & Beverage Services Index, (2017 = 100), At Current Prices

• The total index value has increased over time, reaching 110.402 in November 2023 from lower values in previous years.
• Fast Food Outlets show a significant increase in their index, suggesting a strong growth in this sector.
• Food Caterers experienced fluctuations, with a noticeable dip around May 2023.
• The index for Restaurants and Cafes shows moderate growth with some ups and downs.

Definition

The "SingStat Food & Beverage Services Index, (2017 = 100), At Current Prices" refers to a statistical measure produced by the Singapore Department of Statistics (SingStat) that tracks the performance of the food and beverage services sector in Singapore. Here's what each part of the term means:

• SingStat: Short for Singapore Department of Statistics, the government agency responsible for compiling and publishing statistical data in Singapore.
• Food & Beverage Services Index: A specific index that measures the sales and revenue performance of the food and beverage services sector, which includes restaurants, cafes, food courts, and other eating establishments.
• (2017 = 100): This indicates that the index uses the year 2017 as its base year, and the base index value is set to 100. Changes in the index reflect growth or decline in the sector relative to the base year.
• At Current Prices: This means the index is calculated using the prices of goods and services at the time of sale, without adjusting for inflation. Therefore, it reflects the actual revenue generated by the sector.

In summary, this index provides insight into the economic performance of the food and beverage services industry in Singapore, with 2017 as the reference point, and it measures revenues at the prices prevailing at the time of each transaction.

Food & Beverage Services Index, (2017 = 100), In Chained Volume Terms

• The total industry index in November 2023 is 94.605, indicating a slight decrease from earlier months in 2023, but overall, there's a trend of recovery when compared to previous years.
• The "Fast Food Outlets" segment shows robust performance, with an index value of 117.456 in November 2023, reflecting strong growth in real terms.
• "Restaurants" and "Food Caterers" have lower index values (80.756 and 79.744 respectively in November 2023), suggesting these segments are recovering at a slower pace.
• The index for "Cafes, Food Courts & Other Eating Places" is relatively stable, indicating steady demand in this sector.

Definition

The "Food & Beverage Services Index, (2017 = 100), In Chained Volume Terms" from SingStat (Singapore Department of Statistics) represents an index measuring the economic performance of the food and beverage services sector in Singapore, adjusted for price changes over time (inflation or deflation) to reflect the real volume of services provided. Here’s what each part of the term means:

• Food & Beverage Services Index: This is an indicator that shows the relative level of the sector's sales or output over time.
• (2017 = 100): This signifies that the index is based on a base year of 2017, which means the index value for 2017 is set at 100. This base value is used to compare and calculate the relative changes in the sector over time.
• In Chained Volume Terms: This indicates that the index values are adjusted for price changes to reflect the real volume or quantity of services provided. It uses a method called "chaining" which updates the base year frequently (often annually) to reduce the distortion that can occur with fixed-base year indices due to changes in prices and the composition of the sector over time.

In essence, this index provides a way to look at the sector’s performance in terms of the quantity of services provided, independent of price changes, allowing for a more accurate comparison of economic activity over time.

Analysis

Analysing both sets of data from SingStat for the Food & Beverage Services Index:

Nominal vs Real Terms:

• The "At Current Prices" data shows the nominal performance, representing revenue growth without adjusting for inflation.
• The "In Chained Volume Terms" data reflects real growth, adjusted for price changes, showing the actual volume of services provided.

Sector Growth:

• Both datasets indicate strong growth in the Fast Food Outlets sector, suggesting a robust consumer demand trend in this segment.
• The Restaurants and Food Caterers segments show more modest growth in nominal terms and slower recovery in real terms, possibly due to varying factors like operational costs, consumer preferences, and competition.

Economic Insights:

• The nominal index growth (current prices) suggests increased revenue for the F&B sector, which could be due to price increases, enhanced service offerings, or increased customer footfall.
• The real terms index (chained volume) provides insight into the actual service volume growth, stripping out the effect of inflation, which is crucial for understanding the sector's true expansion and productivity.

Takeaway: The data illustrates the dynamic nature of the F&B sector in Singapore, with fast food outlets leading the growth. The difference between nominal and real growth highlights the impact of price changes and economic conditions on the sector. Understanding both perspectives is vital for a comprehensive analysis of the industry’s health and trajectory.