Brazil: December retail sales post largest contraction on record
February 16, 2016
Retail sales (excluding cars and construction) deteriorated rapidly in December, swinging from a revised 1.6% expansion in November (previously reported: +1.5% month-on-month) to a 2.7% contraction over the previous month in seasonally-adjusted terms. December’s figure marks the largest contraction on record amid overwhelming abysmal economic data concerning Latin America’s largest economy. The fall came on the back of contractions recorded in six of the eight components of the index. Specially, sales of furniture and household appliances as well as personal articles deteriorated notably from the previous month.
On an annual basis, retail sales plummeted 7.1% in December, which followed November’s 7.8% fall that had marked the worst result in over a decade. For the fully year 2015, retail sales contracted 4.3%, notably contrasting 2014’s 2.2% expansion and representing the first contraction in over a decade.