In the comparison with July 2015, total retail trade fell 5.3% with a spread of negative results reaching all eight activities surveyed. The results, in order of importance to the overall rate were: Furniture and household appliances (-12.4%) and other personal and household articles (-11.6%) share the main negative impact on the result of July, followed by Fuels and lubricants (- 9.9%) and Textiles, wearing apparel and footwear (-14.2%) and, with a lower negative influence on the overall result of retail are Books, newspapers, magazines and stationery (-18.6%); Office, computer and communication equipment and material (- 12.9%); and Pharmaceutical and medical goods, cosmetic and toilet articles (-3.2%). The volume of sales of Hypermarkets, supermarkets, food products, beverages and tobacco (-0.1%) remained practically stable compared to July 2015 and did not push, this month, the overall indicator of retail sales.

With a decline of 12.4% in the volume of sales compared to July 2015, Furniture and household appliances exerted the greatest negative impact on the overall rate of the retail, accumulating in the first seven months of the year -14.4 % and in the last 12 months, -15.8%.  Because it is an activity whose sales are related to credit conditions, the behavior of this sector has been affected by the rise in the financing costs.

The segment of other personal and household articles, down 11.6% compared to July 2015, also had the largest negative contribution to the overall result of retail trade.  In the cumulative rate over the seven months of the year and over the last 12 months, the rates were respectively -12.2% and -9.6%.  This segment includes a diverse mix of items, many of them of household replacement, such as bed and bath, i. e., items whose consumption can be postponed.

Fuels and lubricants, with a change of -9.9% in the volume of sales, compared to July 2015, were responsible for the second largest impact on the overall result of the retail trade. In terms of cumulative performance, change rates were -9.8%, both the first seven months of the year and for the last 12. The economic downturn and fuel prices rising above the general inflation are some of the factors that have influenced the behavior of this segment.

Textiles, wearing apparel and footwear, which decreased in terms of the volume of sales by -14.2% compared to the same month last year, represented the third major negative contribution to the overall retail rate, even with industry prices of apparel growing below the overall inflation.  In cumulative terms, the results were -11.6% for the first seven months of the year and -11.8% for the last 12 months.

The segment of Pharmaceutical and medical goods, cosmetic and toilet articles, down 3.2%, was the fourth most significant contribution to the overall result. In terms of cumulative change, rates were -0.3% in the year, but the comparison in the last 12 months remains in the positive range (0.2%). The increase of prices of pharmaceutical products above the general price index is the main factor explaining the recent negative performance of the sector

The segment Office, computer and communication equipment and material, responsible for the fifth negative contribution to the overall rate of retail sales, registered a change of -12.9% in the volume of sales in relation July 2016 against July 2015. Sales' results in cumulative terms were: -15.8% in the cumulative rate over the year and -14.6% over the last 12 months - well below the retail average.

The activity Books, newspapers, magazines and stationery, with a rate of -18.6% in the volume of sales over July 2015, had the sixth highest contribution to the overall result.  In the cumulative rate over the seven months of the year and over the last 12 months, the rates were respectively -17.2% and -16.2%. The prices of stationery products, with a cumulative growth over 12 months above the general price index partly explain the downward trend of this activity. The other possible reason is the budget constraint of households. In addition, concerning newspapers and magazines, the drops are attributable to the replacement of printed products for electronic media.

Hypermarkets, supermarkets, food products, beverages and tobacco, with a change of -0.1% in July over the same month of the previous year, did not push the overall index. This activity had its performance influenced by the reduction in the usual real wage bill of the employed persons, and by the price behavior of food at home that grew well above the overall index accumulated in 12 months.  In terms of cumulative results, the change rates were: -2.9% for the cumulative index in the first seven months of the year and -3.1% for the last 12 months.

Considering the extended retail trade, which includes in addition to the retail, the activities Vehicles, motorcycles, parts and accessories and Construction material, registered in July 2016 a fall of 10.2% in the volume of sales, compared to the same month of the previous year. This performance reflected, above all, the behavior of sales of Vehicles, motorcycles, parts and accessories, which showed a 20.0% decrease over July 2015. The cumulative rates of this activity were -14.7% in seven months and 17.7% in the last 12 months. As for the Construction material segment, changes for the volume of sales were -12.6% over July 2015, and rates of -12.9% for both the cumulative index in seven months and in the last 12 months. In both segments, the results were influenced by the slower pace of the economic activity, lower supply of credit and restricted family budget.

Volume of sales fell in 16 of the 27 Federation Units

In July 2016, sixteen of the 27 Federation Units recorded decline in the volume of sales of the retail trade, compared to the previous month, in the seasonally adjusted series The negative rates ranged from -3.5% in Mato Grosso to -0.1% in Minas Gerais. In Sergipe, the volume of sales remained stable in this comparison. On the other hand, increasing in the retail from June to July 2016, the highlights are: Roraima (4.0%) and Amazonas (3.4%).

Compared to July 2015, the reduction in the volume of sales also had a spread, reaching almost all 27 Federation Units, with the exception of Roraima (3.2%). The highlights, in terms of two-digit negative rates were: Amapá (-18.9%) and Pará (-15.5%).  As to the contribution to the rate of retail trade, the highlights in an increasing order are: São Paulo (-3,0%), Rio de January (-5,0%) and Bahia (-13,4%).

Considering the extended retail trade, the reduction of 10.2% compared to July 2015 reached all 27 states of the federation, especially, in terms of magnitude, for Amapá, with a drop of 17.1%. The negative performance of São Paulo (-7.9%) and Rio de Janeiro (-13.0%), Rio Grande do Sul (-10.0%) and Minas Gerais (-7.9%) were the major impacts on the overall rate of extended retail.