* seasonally adjusted

In October 2016, the volume of sales of the retail trade of the country reduced 0.8% over September in the seasonally adjusted series. The nominal revenue of sales fell 0.5% over September, in the same comparison, accumulating a high of 4.8% in the year and of 4.3% in the last 12 months. In the non-adjusted series, the retail fell 8.2%, showing the 19th negative rate in a row and accumulating -6.7% in the year and -6.8% in the last 12 months - the sharpest decrease in the indicator since 2001.
The extended retail, on its turn, fell 0.3% in the seasonally adjusted series and 10.0% in relation to October 2015.

In October, the volume of sales in the retail decreased 0.8% over September, in the seasonally adjusted series, fourth consecutive negative result in this comparison, accumulating a 3.2% loss in these four months. The nominal revenue of sales fell 0.5% over September. With this result, the quarterly moving average of the volume of sales kept falling, repeating the change of -0.8% in October, whereas the same index for the nominal revenue fell 0.2%, after staying practically stable in September (0.1%).

In the other comparisons, in the non-adjusted series, the volume of sales of the retail fell 8.2% in the comparison with October 2015 - the nineteenth consecutive negative rate in this comparison and the sharpest since may 2016 (-9.0%). Thus, the cumulative index in the year decreased 6.7%, whereas the cumulative index in the twelve months (-6.8%) had the sharpest fall since the beginning of the time series, in 2001. The moving average of the nominal revenue of sales, on its turn, grew 1.9% over October 2015, accumulating 4.8% in the year.

Concerning the extended retail trade, which includes the retail and the activities of Vehicles, motorcycles, parts and pieces and of Construction material, the change decreased 0.3% from September to October, in the seasonally-adjusted series, after remaining stable in September. The nominal revenue fell 0.5%, after advancing 0.4% in September.

In relation to October 2015, the volume of sales of the extended retail decreased 10.0% and the nominal revenue fell 2.7%. The cumulative rates were -9.3% in the year and -9.8% in the last 12 months for volume of sales, and -0.8% and -1.4% for the nominal revenue, respectively. 

Among the sectors, the 0.8% drop for the volume of sales, from September to October, is related to drops in Hypermarkets, supermarkets, food, beverages and tobacco (-0,6%); Fuels and lubricants (-1.7%) and, to a lesser extent, Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (-0.1%).  However, the positive rates are, in a decreasing order: Office, computer and communication equipment and material(7.1%), other personal and household articles (0.8%), Fabric, wearing apparel and footwear (0.5%) andBooks, newspapers, magazines and stationery (0.4%). The volume of sales of furniture and domestic appliances (0.0%) stood stable, after accumulating a 9.5% loss between February and September.

In the extended retail trade, there was a 0.3% decrease between September and October.  This result was influenced by the decrease in Vehicles and motorcycles, parts and accessories (-0.3%), in the month on month comparison, yet Construction material
(-4.0%) deepened the decrease in relation to September's result (-3.1%) (Table 1).

In relation to October 2015 (not seasonally-adjusted), the changes of the extended retail were of -10.0% for the volume of sales and of -2.7% for the nominal revenue. The volume of sales of this series accumulated drops of -9.3% in the year and of -9.8% in the last 12 months. In the sectors of Vehicles, motorcycles, parts and pieces and of construction material, the volume of sales decreased by -13.5% and -13.8%, respectively. The cumulative rates in 2016 were of -14.5% for Vehicles, motorcycles, parts and pieces and of -12.2% forconstruction materials.

TABLE 1
BRAZIL - INDICATORS OF THE VOLUME OF SALES DO OF TEH RETAIL TRADE AND OF THE EXTENDED RETAIL TRADE
ACCORDING TO ACTIVITIES: PMC - October 2016

Source: IBGE, Diretoria de Pesquisas, Coordenação de Serviços e Comércio.
(1) Seasonally-adjusted series. (2) The indicator of the retail trade comprises the results of the activities 1 to 8.
(3) The indicator of the extended retail trade comprises the results of activities 1 to 10

In the non-adjusted series, all activities down

In relation to October 2015 (not adjusted), the volume of sales of the retail decreased 8.2% in October 2016, with a widespread fall among the activities surveyed. It worth mentioning that October 2016 (20 workdays) had one less workday than October 2015 (21 workdays). Among the activities, Hypermarkets, supermarkets, food, beverages and tobacco (-6.5%) exerted the sharpest negative influence on the retail's rate, followed by Furniture and domestic appliances (-13.3%) and Fuels and lubricants (-10.4%). In October, the performance of these three sectors, together accounted for 70.0% of the retail global rate. The results of the other activities were: Fabric, wearing apparel and footwear (-12.1%); Other personal and household articles (-7.6%); Pharmaceutical and medical goods, cosmetic and toilet articles (-6.1%), Books, newspapers, magazines and stationery, (-17.3%); and Office, computer and communication equipment and material (-6.7%).

The segment of Hypermarkets, supermarkets, food, beverages and tobacco exerted the greatest influence on the retail's rate, with a decrease of 6.5% over October 2015. It is the 21st negative consecutive rate and the sharpest since June 2003
 (-8.6%). This behavior reflects the continuous reduction of the real wage bill earned between the quarters ended in October 2015 and October 2016. The essential nature of the products commercialized in this sector explains its performance above the average. In cumulative terms, the rates recorded were -3.3% in the year and of -3.5% in the last 12 months.

The 13.3% decrease in the volume of sales Furniture and domestic appliances exerted the second biggest negative impact on the retail global rate. Concerning the cumulative rates, the changes were of -13.6% in the year and of -14.3% in the last 12 months. With a sale dynamics associated to credit availability, the results of the sector, below the global average, were influenced mainly by the rise of the interest rate and the reduction of the real earnings between October 2016 and October 2015.

The segment of Fuels and lubricants, with a decrease of 10.4% in the volume of sales in relation to October 2015, represented the third biggest negative contribution to the total result of retail. In cumulative terms, the rates recorded were -9.8% in the year and of -10.0% in the last 12 months.

The sector of Fabric, wearing apparel and footwear, whose volume of sales fell 12.1%, exerted the fourth biggest influence on the retail rate. The cumulative rates were -11.4% in the year and of -11.5% in the last 12 months.

The activity of Other personal and household articles, which encompasses department stores, glasses shops, jewelry shops, sporting goods stores and toy stores, etc., fell 7.6% in relation to October 2015, the fourteenth negative result in this comparison, exerting the fifth biggest influence in the retail rate. In cumulative terms, the changes were: -11.3% in the year and -10.3% in the last 12 months. The negative behavior of this activity reflects the reduction of the purchase power of families between October 2015 and October 2016.

The volume of sales of Pharmaceuticals, medical and orthopedic articles and toiletries registered a fall of 6.1% over October 2015. The cumulative indexes of the year and of the last 12 months registered less intense drops among the activities surveyed: -1.5% and -0.8%, respectively.

The activity Books, newspapers, magazines and stationery influenced negatively the retail global result, presenting a change in the volume of sales of -17.3% over October 2015, and cumulative rates of -17.0% in the year and of -16.8% in the last 12 months. The downward trend of this activity has been influenced, as far as newspapers and magazines are concerned, by a certain replacement of print products by electronic ones.

The segment of Office, computer and communication equipment and material recorded a volume of sales dropping 6.7% in October. Even so, the cumulative rates were positive: 14.1% in the year and 13.5% in the last 12 months. The negative results in October reflect not only the reduction of the real income but also the interest rise and, especially for communication and computer equipment, the valuation of the exchange rates.

In the seasonally adjusted series, retail sales down in 15 of 27 FUs

From September to October 2016, in the seasonally adjusted series, the retail sales were negative for 15 of the 27 Federation Units, with the biggest change rates coming from Roraima (-1.9%), Piauí and Amapá (both with -1.7%). On the other hand, Acre (2.3%) and Rondônia (1.7%) were the states with the greatest advances in the volume of sales in this comparison.

Over October 2015 (not seasonally adjusted), the volume of sales of the retail trade dropped in 25 of the 27 states and the greatest drops were in Paraíba
(-18.7%) and Amapá (-16.9%). However, the sharpest negative influences on the retail came from São Paulo (-6.4%) and Rio de Janeiro (-10.6%).

In the extended retail trade, except for Roraima (7.8%), the Federation Units registered negative changes over the October 2015. In terms of volume of sales, the highlights were: Pará (-16.5%); Tocantins (-14.7%) and Mato Grosso (-14.4%). It is worth observing that the state with the greatest negative impact was São Paulo (-10.7%), followed by Rio de Janeiro, with a -11.0% rate.