Brazil: Retail sales grow at double-digit pace in 2010
February 15, 2011
In December, retail sales (excluding cars and construction) remained flat over the previous month after seasonal adjustments. The reading, which followed on a 0.8% rise in November, undershot analysts' expectations of a 0.4% expansion. On an annual basis, retail sales accelerated slightly from 9.9% in November to 10.1% in December. The flat reading reflected lower sales of food and beverages (-0.3% month-on-month), as higher prices in supermarkets curbed the volume of trade of such goods. Meanwhile, the broad index that includes automobiles and construction materials expanded 2.3% over the previous month in December, on the back of strong sales of vehicles (+4.7% mom). As a result of the resilience of retail sales, which recorded only one negative month-on-month reading last year, full-year growth accelerated from 5.9% in 2009 to 10.9% in 2010.