Brazil: Retail sales contract for second consecutive month
March 30, 2017
Retail sales (excluding cars and construction) in Brazil fell again in January, contrasting market expectations of a return to growth. Sales fell 0.7% from the previous month in seasonally-adjusted terms, which followed December’s revised 1.9% contraction (previously reported: -2.1% month-on-month).
Contractions were recorded in six of the eight components of the index in January. However, food, beverages and tobacco—the most significant category of the index—recorded a slight expansion.
On an annual basis, retail sales decreased 7.0% in January, which was a deterioration from December’s 4.9% decline and marked a three-month low. Despite the poor result, the trend edged up as the annual average variation in retail sales rose from minus 6.3% to minus 5.9%, a ten-month high.