Brazil: Retail sales continue to grow in September
November 12, 2010
In September, retail sales (excluding cars and construction) expanded a seasonally adjusted 0.4% over the previous month. The reading, which followed on a strong 2.0% expansion in August, exceeded market expectations that retail sales would remain flat. On an annual basis, retail sales accelerated from 10.5% in August to 11.8% in September. The monthly expansion reflected strong computer sales (+5.6% month-on-month), which was partially offset by a drop in pharmaceutical sales (-1.2% mom) and supermarkets (-0.1% mom). The broad index, which includes autos and construction goods, fell 0.9% over the previous month amid lower sales of building materials (-0.2% mom) and vehicles (-0.8% mom). As a result of the resilient growth pace in retail sales, the trend continues to point upwards, with the annual average growth rate rising from 10.1% in August to 10.7% in September.