Brazil: Retail sales record largest drop in six months in June
Retail sales dropped 1.4% in month-on-month seasonally-adjusted terms in June, which was a larger contraction than May’s 0.4% decrease. The figure marked the steepest drop since December 2021. Looking at the details of the release, the result was chiefly driven by a fall in supermarkets, food, drinks and tobacco sales. In addition, fuels and lubricants sales also swung to a contraction. Lastly, textiles, clothing and footwear sales declined at a sharp rate.
On an annual basis, retail sales fell at a marginally sharper rate of 0.3% in June (May: -0.2% yoy), the worst result since January. As a result, the trend pointed down, with the annual average variation of retail sales coming in at minus 0.9%, down from May’s minus 0.4%.