Brazil: Retail sales growth moderates in June
Retail sales increased 8.0% month-on-month in seasonally-adjusted terms in June, a softer expansion than May’s record-rate jump of 14.4%. June’s reading beat market analysts’ expectations of a 5.4% rise, however.
June’s softer print was largely driven by weaker supermarkets, food, drinks and tobacco sales. In addition, fuels and lubricants as well as textiles, clothing and footwear sales also lost pace.
On an annual basis, retail sales rose 0.5% in June, rebounding from May’s 6.4% contraction. Meanwhile, annual average retail sales growth came in at 0.1% in June, matching May’s result.
Commenting on the outlook for retail sales, Alberto Ramos, economist at Goldman Sachs, noted:
“Retail sales touched bottom in April and have staged a solid recovery since then supported by large fiscal increase transfers and the gradual relaxation of social distancing protocols. However, a still very complex domestic covid viral picture and the likely reduction of fiscal stimulus before the end of the year could soften/weaken the pace of the recovery.”