Brazil: Retail sales rebound in April
June 13, 2013
In April, retail sales (excluding cars and construction) rose 0.5% over the previous month in seasonally adjusted terms. The reading was above the flat growth observed in March (previously reported: -0.1% month-on-month) but undershot market expectations, which had retail sales rising 1.2%. On an annual basis, retail sales expanded 1.6% in April, below the faster 4.5% growth rate tallied in March.
Among the eight categories that compose the narrow retail sales index, five increased over the previous month. Most notably, sales in the pharmaceutical and medical articles category recorded the fastest expansion over the previous month. Meanwhile, the broad retail sales index, which includes automobiles and construction materials, rose 1.9% over the previous month (March: +0.2% month-on-month).
Annual average growth in retail sales fell from 6.8% in March to 6.4% in April, the lowest level in more than three years. LatinFocus Consensus Forecast panellists expect retail sales growth to decelerate further and to expand 5.3% this year, which is down 0.2 percentage points from last month's forecast. For 2014, the panel sees retail sales growing also 5.5%.