Brazil: Retail sales accelerate in August
October 14, 2010
In August, retail sales (excluding cars and construction) expanded 2.0% over the previous month in seasonally adjusted terms. The reading, which overshot market expectations of a 1.5% rise, followed on a 0.4% expansion recorded in July. On an annual basis, retail sales growth inched down from 11.1% in July to 10.4% in August. The monthly expansion was broad-based, as sales rose in all eight categories composing the index. However, stationary and furnishing, which jumped 3.5% and 2.9% respectively, were the strongest growth drivers. The broad index, which includes autos and construction goods, rose 2.1% over the previous month amid strong sales of building materials (+2.0% mom) and vehicles (+2.4% mom). As a result of the robust August reading, the trend continues to point upwards, with the annual average growth rate rising from 9.7% in July to 10.1% in August, further approaching the Consensus Forecast projection of a 10.4% increase in full-year 2010. In 2011, the panel expects retail sales growth to moderate to 6.1%.