Brazil: Retail sales return to contraction
July 12, 2016
Retail sales (excluding cars and construction) returned to contraction in May, falling 1.0% over the previous month in seasonally-adjusted terms. The result notably contrasted April’s revised 0.3% expansion (previously reported: +0.5% month-on-month). Six of the eight components of the index contracted, with furniture and household appliances recording a profound fall.
On an annual basis, retail sales fell 9.0% in May, which was a steeper drop than April’s 6.9% contraction. As a result, the trend deteriorated. Annual average variation in retail sales fell from minus 6.1% to 6.5%.