Core retail sales drop 0.3% in August, below expectations, IBGE says

The median estimate from 26 consultancies and financial institutions surveyed by Valor Data expected a 0.6% decline in the period

11/10/2024

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Core retail sales volumes dropped 0.3% in August compared to July, in seasonally adjusted terms, according to the Monthly Survey of Trade (PMC) released by the Brazilian Institute of Geography and Statistics (IBGE) on Thursday (10).

The decline was smaller than anticipated, as the median estimate of 26 consultancies and financial institutions polled by Valor Data was a 0.6% drop, with projections ranging from a 1.8% fall to a 0.2% rise. In July, core retail sales had advanced 0.6% compared to June.

Year-on-year, core retail grew 5.1% compared to August 2023. The sector has shows a 4% increase in the 12 months through August and a 5.1% rise in 2024.

The 5.1% gain year-on-year was higher than expected. The median forecast was a 4.1% rise, with projections ranging from a 2% to 5.7% increase.

Core retail’s nominal revenue remained stable in August compared to July. Year-on-year, it rose 9.8%.

Sales declined across most of the core retail sector in August, with seven of the eight activities surveyed by the PMC reporting drops compared to July.

PMC data also show that five out of eight activities saw year-on-year growth compared to August 2023. Overall, core retail grew 5.1% in this comparison.

From July to August, the following segments experienced declines: personal and household goods (-3.9%); books, newspapers, magazines, and stationery (-2.6%); office, IT, and communication equipment (-2%); furniture and appliances (-1.6%); textiles, clothing, and footwear (-0.4%); fuels and lubricants (-0.2%); and hypermarkets, supermarkets, food products, beverages, and tobacco (-0.1%).

The only positive outlier was the pharmaceuticals, medical, orthopedic products, and cosmetics segment, which grew 1.3% between July and August 2024.

*By Lucianne Carneiro, Valor — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/