Summary
In May, retail activities declined by 1.0%, and broad retail sales fell by 1.1% (which includes construction materials, vehicles, and wholesale of food products, beverages, and tobacco). The market projections were -0.3% and -0.8%, respectively.
Positive highlights
Pharmaceutical items, medical, orthopedic, and perfumery (2.3%), Books, newspapers, magazines, and stationery (1.7%), Fuels and lubricants (1.4%), Equipment and materials for office, computers, and communication (1.1%) and Vehicles and motorcycles, parts and pieces (2.1%)
Negative highlights
Textiles, clothing, and footwear (-3.3%), Hyper, supermarkets, food products, beverages and tobacco (-3.2%), other articles of personal and household use (-2.3%,) and Furniture and appliances (-0.7%) and construction materials (-0.9%)
View
Retail Sales declined more than expected in May, mainly due to a steep drop in the hyper and supermarkets breakdown, which since the beginning of the year had been showing a stable growth trajectory, responding even more to the tightening of the country’s financial conditions. For the coming months, some positive surprises may appear given the consumer incentive policies planned by the Lula government, such as for vehicles and for the “white line” (general appliances) which may boost the overall economic activity of the country.
