Brazil: Retail sales fall in May
July 21, 2017
Retail sales (excluding cars and construction) dropped in May after growing in April. Sales fell 0.1% from the previous month in seasonally-adjusted terms, which contrasted April’s revised 0.9% increase (previously reported: +1.0% month-on-month) and notably undershot market analysts expectations of a rise. The unexpected fall is a bad sign for the battered economy and suggests that a firm recovery has yet to take hold.
Looking at May’s result in detail, drops were recorded in four of the eight components of the index. A notable fall was seen in sales of clothing and footwear, while sales of food, beverages and tobacco rose in May.
On an annual basis, retail sales increased 2.4% in May, which was above April’s 1.7% increase. As a result, the trend rose and the annual average variation in retail sales came in at minus 3.6% in May, above April’s minus 4.6%.