Brazil: Retail sales bounce back in January
Retail sales (excluding cars and construction) increased 0.4% from the previous month in seasonally-adjusted terms in January, notably contrasting December’s revised 2.1% contraction (previously reported: +2.2% month-on-month). December´s result had marked the largest drop in over two years. However, the result undershot market expectations of a stronger 0.6% increase.
The rebound was driven chiefly by a turnaround in sales of food, beverages and tobacco. In addition, sales of furniture and household appliances also increased, after contracting in December. Meanwhile, sales of fuels and lubricants lost steam from the previous month.
On an annual basis, retail sales rose 1.9% in January, notably above December’s revised 0.7% expansion (previously reported: +0.6% year-on-year). Annual average growth in retail sales, however, ticked down from 2.3% in December to 2.2% in January.