Brazil: Retail sales record worst result in nearly two years in December

Retail sales (excluding cars and construction) fell 2.2% from the previous month in seasonally-adjusted terms in December, notably contrasting November’s revised 3.1% expansion (previously reported: +2.9% month-on-month) and the largest drop since January 2016.

Declines were recorded in five of the eight categories of the index, with notably contractions in sales of other articles for personal and domestic use, and furniture and household appliances.

On an annual basis, retail sales rose 0.6% in December, notably below November’s 4.5% expansion. In 2018, retail sales grew 2.3%, modestly above 2017’s 2.1%.

Brazil Retail Sales Forecast

Panelists participating in this month’s LatinFocus Consensus Forecast expect retail sales to increase 3.4% in 2019, which is unchanged from last month’s forecast. For 2020, the panel sees retail sales growing 3.5%.