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BRAZIL: Retail Sales Rise Slightly, Beat Market Forecast In September

Retail sales in Brazil were up 0.5% in September from August, recovering from a 0.5% fall a month before, said the country’s statistics office. The results exclude the sales of vehicles and construction materials. The monthly increase was slightly above expectations – analysts polled by Agencia CMA forecast a 0.2% rise.

On an annual basis, retail sales increased for the sixth consecutive month in September, at a 6.4% rate, posting the largest expansion since April 2014 (+6.7%). The result also beat estimates (+5.5%).

Year-to-date, retail sales in Brazil rose 1.3%. In 12 months through August, the indicator receded 0.6%. In the third quarter of 2017, there was an increase of 4.3% compared to the same period of the previous year. Private consumption in Brazil represents approximately 60% of the country’s Gross Domestic Product (GDP).

Compared to August, five out of the eight retail sectors surveyed posted higher sales in September, highlighting hypermarkets, supermarkets, food products, beverages and tobacco (+1.0%), and pharmaceuticals, medical, orthopedic, perfumery and cosmetics (+4.3%). At the negative end, there were decreases, on a monthly basis, in fuels and lubricants (-0.7%) and books, newspapers, magazines, and stationery (-3.4%).

Annually, also five of the eight sectors posted higher sales, with hypermarkets, supermarkets, food products, beverages and tobacco (+6.0%), and furniture and household appliances (+16.6%) posting the best results.

The material has been provided by InstaForex Company – www.instaforex.com