RIO DE JANEIRO, BRAZIL – The Boa Vista index, which gauges the trade flow in Brazil, recorded its third consecutive drop in April, and the trend is worsening due to the impacts of the quarantine enforced in the country to contain the spread of the novel coronavirus.
In the fourth month of the year, compared to March, the already seasonally adjusted indicator dropped 26.6 percent, accumulating a decline of 1.3 percent in 12 months and a negative variation of 6.4 percent for the year.
The performance of the Brazilian retail market, according to Boa Vista, reflects the vulnerability of the labor market, which has led to low consumer income growth. These factors, the note mentions, are being severely impacted by the effects of restrictions due to the Covid-19 pandemic.
“Given the adversities caused by the emergence of the new virus and the social isolation measures, a worsening in employment and consumption level can be expected in 2020,” it assesses, adding that this scenario, in turn, points to a drop in economic activity and trade activity in the coming months.
Segments
The supermarket, foodstuffs and beverages category was the only one to avert losses, with a slight increase of 0.1 percent in the month, accumulating 1.6 percent in 12 months.
In April, the furniture and home appliances segment recorded the highest drop, at 83.3 percent, when compared to March (-13.5 percent), after a seasonal adjustment. In the 12 months ended in April, the sector fell into negative territory, retreating 7.9 percent.
The textile, clothing, and footwear category retreated 2.9 percent in the month, with the accumulated rate over 12 months showing an increase of 7 percent.
The fuel and lubricant sector, on the other hand, contracted 18.2 percent in April, compared to March, and fell 2.5 percent in the 12 months ended in April.
Source: Estadão Conteúdo