Brazil: Retail sales decline most in more than three years
July 11, 2012
In May, retail sales (excluding cars and construction) fell 0.8% over the previous month in seasonally adjusted terms. The reading contrasted both the 0.7% increase observed in April and market expectations of a 0.6% rise. In fact, the reading represented the worst decline since November 2008. On an annual basis, retail sales expanded 8.2% in May, above the 6.0% rise observed in April but below market expectations of a 10.5% increase. Among the eight categories that compose the narrow retail sales index, three declined over the previous month. Most notably, sales in the furniture and house appliances category recorded the largest decrease over the previous month. Meanwhile, the broad retail sales index, which includes automobiles and construction materials, fell 0.7% over the previous month. Annual average growth in retail sales inched up from 7.2% in April to 7.3% in May.