Brazil: Retail sales record largest decrease in over one year in December
Retail sales decreased 2.6% in month-on-month seasonally adjusted terms in December, which was a larger contraction than November’s 0.9% decrease. December’s figure marked the worst reading since August 2021. Looking at the details of the release, December’s figure was partly due to a deterioration in supermarkets, food, drinks and tobacco sales, as they fell at the sharpest pace since April. Moreover, textiles, clothing and footwear sales declined at a sharper rate. Lastly, furniture and appliances sales also fell at a steeper pace than in the previous month.
On an annual basis, retail sales rose at a more moderate pace of 0.4% in December (November: +1.4% yoy), the weakest result since July. Meanwhile, the trend improved, with the annual average growth of retail sales coming in at 1.0% in December, up from November’s 0.6% reading.