Brazil: Retail sales fall in June
August 14, 2013
In June, retail sales (excluding cars and construction) increased 0.5% over the previous month in seasonally adjusted terms. While the reading was above the flat growth observed in May, it was slightly below market expectations, which had retail sales increasing 0.6%. On an annual basis, retail sales expanded 1.7% in June, below the 4.4% growth rate registered in May. Five of the eight categories that compose the narrow retail sales index increased. The largest gains over the previous month were seen in sales of fuel and sales of other articles for personal use. On the other hand, sales of books and newspapers, as well as clothing and footwear, recorded the most notable declines. Meanwhile, the broad retail sales index, which includes automobiles and construction materials, rose 1.0% over the previous month (May: -1.2% month-on-month). Annual average growth in retail sales fell from 6.1% in May to 5.5% in June, which is the lowest level recorded since November 2009. LatinFocus Consensus Forecast panellists expect growth in retail sales to decelerate further, expanding 5.1% this year, which is down 0.2 percentage points from last month's forecast. For 2014, the panel sees retail sales growing 5.4%.
Author: Carl Kelly, Economist