Retail sales in Brazil rise in May for the fifth consecutive month

RIO DE JANEIRO, BRAZIL – Brazilian retail sales rose 0.1% from April to May, according to IBGE Monthly Trade Survey (PMC) data released Wednesday. According to IBGE, it is the fifth consecutive positive rate.

Cristiano Santos, head of the survey, points out that there is a recovery in the retail sector, but it starts from a low base and is becoming less pronounced in these months:

– Despite the four positive results, rates were down, Santos estimates.

Six of the eight industries surveyed posted positive rates in May. In terms of impact, the highlight was the 3.6% increase in pharmaceutical, medical, orthopedic, and perfumery goods, which coincides with the adjustments made by the pharmaceutical sector in April and May.

It is followed by the textiles, clothing, and footwear sector, which increased by 3.5% in the month under review due to the sports shoes and sneakers sector.

In turn, the books, newspapers, magazines, and stationery segment increased by 5.5%. Furniture and household appliances fell 3%, while other personal and household goods fell 2.2%.

– The furniture and home furnishings sector did not regain its pre-pandemic levels as it recorded significant losses in 2021. During the pandemic, these items significantly grew as people replaced them because they were more at home. After this extraordinary demand, these products began to lose importance in families’ budgets, especially household appliances – analyzes Santos.

INFLATION EFFECT

Although most activities registered growth, the survey shows that the sector as a whole is struggling with inflation. Sales in the industry increased by 0.4% in May but adjusted for inflation, sales volume increased by 0.1%.

In some sectors, the impact of inflation is even more significant, such as in the fuel and lubricants sector, whose prices weigh on families’ budgets when it comes to filling up the car. The same applies to the pharmaceutical products sector due to price adjustments.

The supermarket sector is not left out either. Sales increased by 4.1%, while the volume of sales increased by 1%.