Friday, September 14, 2018

Retail sales retreat more than expected in July, says IBGE

Rio de Janeiro/São Paulo – Brazil's retail sales fell unexpectedly in July eregistraram the worst result for the month in two years pressed mainly for furniture and appliances, emphasizing the caution and uncertainty of consumers in the scenario of weaker economic activity. Retail sales fell 0,5% in July over June, third negative result followed, said the Brazilian Institute of geography and statistics (IBGE) on Thursday. That was the weakest reading for July since the fall of 0,9% sales in 2016 and bucked expectations Reuters research 0,3% high. In comparison with the same month of last year, sales had 1,0% crash, also the worst since July 2016 (-5,6%) and stopping 15 positive results followed, with forward projection of 1,2%. Amid the backdrop of slow economic activity and unemployment still high, although inflation in Brazil remains at low levels, the retail industry saw in July fall in the volume of sales in five of the eight surveyed activities over the previous month. "The job market is still complicated, the electoral environment is also marked by uncertainties and all this makes consumers stay conservative and cautious, especially in goods you can postpone and prevent", explained the research manager Isabella Nunes. The highlights were negative for 4,8% losses in furniture and appliances, 2,5% other articles of personal use and household and 1,0% in textiles, apparel and footwear. According to the IBGE, these setoresjuntos weigh 30% of total retail. "Furniture and appliances and others were the main anchors due to good performance in June with the promotion of sales of TVs because of the World Cup," he added Isabella. At the other end, sales of Hypermarkets, supermarkets, food products, beverages and tobacco, with significant weight on the pocket of the consumer, increased by 1,7% in July. Retail sales expanded, including vehicles and construction material, shrank in July 0,4% in comparison with the previous month, pressured mainly by losses of 2,7% of building materials.
Exame - 13/09/2018 News Item translated automatically
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