Brazil: Retail sales slow in September
November 13, 2013
In September, retail sales (excluding cars and construction) increased 0.5% over the previous month in seasonally-adjusted terms. The increase was below both the 0.9% rise registered in August and market expectations of a 0.8% increase. On an annual basis, retail sales expanded 4.1% in September, which was below the 6.2% growth rate registered in August.
Six of the eight categories that compose the narrow retail sales index increased. The largest gain over the previous month was seen in the "other personal and household articles" category. Sales of pharmaceuticals followed in terms of the largest gains. Conversely, sales of home appliances and electronics declined. Meanwhile, the broad retail sales index, which includes automobiles and construction materials, contracted 0.7% over the previous month (August: 0.0% month-on-month).
Annual average growth in retail sales fell from 5.1% in August to 4.8% in September, which is the lowest level since March 2006. LatinFocus Consensus Forecast panelists expect growth in retail sales to decelerate further, expanding 4.2% this year, which is up 0.2 percentage points from last month's forecast. For 2014, the panel sees retail sales growing 4.1%, which is up 0.1 percentage points from last month's estimate.
Author: Carl Kelly, Economist