Brazil: Retail sales drop for first time in four months
October 11, 2011
In August, retail sales (excluding cars and construction) contracted a seasonally adjusted 0.4% over the previous month. The reading contrasted the revised 1.2% increase recorded in July (previously reported: +1.4% month-on-month) and fell short of market expectations of a more moderate 0.1% decline. Moreover, the figure represented the first decline in retail sales since April. On an annual basis, retail sales decelerated from 7.1% in July to 6.2% in August. Eight out of ten activities declined in August compared to the previous month. Most notably, sales in the fabric, apparel and footwear category contracted 2.8%. Meanwhile, the broad retail sales index, which includes automobiles and construction materials, fell 2.3% over the previous month, with both vehicle and construction sales declining in August. Annual average growth in retail sales fell from 8.5% in July to 8.2% in August.