Brazil: Retail sales tumble in December despite Christmas season
February 14, 2017
Retail sales in Brazil (excluding cars and construction) plunged in December, despite the holiday season. Sales fell 2.1% from the previous month in seasonally-adjusted terms, contrasting November’s revised 1.0% expansion (previously reported: +2.0% month-on-month). The result marked the largest contraction in nearly a year.
Contractions were recorded in four of the eight components of the index in December. Food, beverages and tobacco—the most significant category of the index—recorded a notable drop and sales of furniture and household appliances also fell.
On an annual basis, retail sales decreased 4.9% in December, which was a deterioration from November’s 3.8% decline. Despite the poor result, the trend edged up as the annual average variation in retail sales rose from minus 6.5% to minus 6.2%, an eight-month high.