Data Release: 11/09/2022
Brazilian retail sales advanced 1.5% MoM (1.0% YoY) in September, well above market expectations (0.3% MoM). Excluding vehicles and construction material sales, retail sector grew 1.1% MoM.
Positive contributions came mainly from Books, newspapers, magazines and stationery (+2.5%) and Office, computer and communication equipment and material (+1.7%) mainly. Hypermarkets and supermarkets also rose 1.2% in the month. On the other hand, Other personal and household items dropped 1.0% MoM in that month.
View: At the end of the third quarter of the year, retail sales rebounded after had been very affected in the previous months, now helped by the Auxílio Brasil extension from R$ 400 to R$ 600 since August. However, we expect a retail sector slowdown in the following months, reflecting the monetary tightening and negative effects of an eventual fuel prices increase on disposable income.
