🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Brazil retail sales fall in May, and miss expectations

Published 07/14/2023, 08:45 AM
Updated 07/14/2023, 10:37 AM
© Reuters. FILE PHOTO: A salesman is seen at his vegetable stand at the supply centre (CEASA) in Brasilia, Brazil May 9, 2023. REUTERS/Adriano Machado

SAO PAULO (Reuters) -Brazil's retail sales fell in May and missed expectations, government statistics agency IBGE showed on Friday, as half of the segments presented a decline for the month.

Sales dropped 1.0% in May compared with the previous month, missing expectations of a 0.0% increase from economists polled by Reuters. The indicator also decreased 1.0% on a yearly basis in the month, below an expected 1.95% rise, marking the first drop in nine months.

The monthly decrease in sales, IBGE said, came on the back of four positive results of the eight segments surveyed, with pharmaceutical products and books, newspapers, magazines and stationery posting the biggest rise.

The agency highlighted the key indicator has jumped 1.3% so far this year.

© Reuters. FILE PHOTO: A salesman is seen at his vegetable stand at the supply centre (CEASA) in Brasilia, Brazil May 9, 2023. REUTERS/Adriano Machado

Activities more linked to demand are weakening, an expected move given the environment of "scarce credit and high levels of household indebtedness," said senior economist at Inter bank Andre Cordeiro.

The result reflects that lower inflation, the boost from the Brazilian real rebound, and government cash transfers are "no longer offsetting the drag from tighter financial conditions at the headline level," Pantheon Macroeconomics' chief economist for Latin America, Andres Abadia, said in a note to clients.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.