Summary
Broad retail sales retreated 0.6% MoM in November, below expectations of stability. The core retail sales, which exclude vehicles and construction materials, also retreated 0.6% MoM.
Positive highlights
Pharmaceutical, medical, orthopedic, and toiletries (1.7% MoM), furniture and appliances (2.2% MoM), vehicles and motorcycles, parts and pieces (0.4% MoM), and Construction materials (3.0% MoM).
Negative highlights
Fuels and lubricants (-5.4% MoM), office, computer, and communication equipment and supplies (-3.4% MoM), Books, newspapers, magazines, and stationery (-2.7% MoM), Fabrics, clothing, and footwear (-0.8% MoM), Other personal and household articles (-0.3% MoM), and hyper, supermarkets, food, beverages and tobacco (-0.2% MoM).
View
Confirming our more pessimistic view, the retail sales contraction in November reflected the tighter financial conditions and the dissipation of the aid expansion effect. For the following months, the consumer confidence advance may help households’ consumption ahead despite the contractionary monetary policy.
