Brazil’s retail sales dropped by 0.1% in January 2025, marking the third consecutive month of decline. The largest declines were noted in pharmaceutical products and supermarkets, while office equipment and fuels saw increases. Year-on-year, retail sales improved by 3.1% from the previous month, indicating some growth potential.
In January 2025, Brazil’s retail sales experienced a minor decline of 0.1% month-over-month, following a revised decrease of 0.3% in December 2024. This decline surpassed forecasts which anticipated a decrease of 0.2%. This trend marks the third consecutive month of falling retail sales.
Cristiano dos Santos from the Brazilian Institute of Geography and Statistics (IBGE) noted that despite the declines, the data indicate a phase of stability for the retail sector. The most significant decrease was observed in sales of pharmaceutical, medical, orthopedic, and perfumery products, which plummeted by 3.4%. Other sectors that reported losses include hypermarkets, supermarkets, and food products, down by 0.4%, furniture and appliances, down by 0.2%, and a decrease of 0.1% in fabrics, clothing, and footwear.
On a brighter note, certain categories saw growth. Sales of office equipment, supplies, IT, and communication increased by 5.3%, while fuels and lubricants rose by 1.2%. Additionally, personal and household items and books, newspapers, and stationery experienced increases of 0.7% and 0.6%, respectively. Year-over-year, retail sales saw a rise of 3.1%, outperforming the 2% increase recorded the previous month.
The latest retail sales data from Brazil reflects a complex landscape, with a slight month-over-month decline amidst some sectors showing growth. The declining figures in categories like pharmaceuticals and food products highlight challenges in those areas. Conversely, gains in office supplies and household items indicate pockets of resilience within the market. Despite the complications, a year-on-year increase presents a cautiously optimistic outlook for the future.
Original Source: www.tradingview.com
