In October 2017, the national retail trade fell (-0.9%) against the previous month, in the seasonally-adjusted series, after increasing by 0.3% in September. As a result, the quarterly moving average for retail sales declined from -0.1% (quarter ended in September 2017) to -0.4% (quarter ended in October 2017).

In the non-adjusted series, compared to the same month of the previous year, total retail trade grew 2.5% in October 2017 - the seventh positive rate in a row, but below September's rsult (6.2%). The cumulative volume of sales in the year was 1.4% and the cumulative in the last 12 months changed by 0.3% in October, registering the first positive result since April 2015 (0.2%).

The extended retail trade (including vehicles, motorcycles, parts and pieces and construction materials) declined (-1.4%) compared to September 2017, after growing for four consecutive months, a period in which the extended retail accumulated a gain of 3.5%, in the seasonally adjusted series. Compared to October 2016, the extended retail trade increased 7.5% - the sixth consecutive positive rate, and, as a result, it accumulated 3.2% from January to October. The cumulative index in the last 12 months had its first high (1.4%) since August 2014 (0.6%). Access the full publication here.

Five of the eight activities surveyed dropped from September to October

The decrease in the volume of sales of the retail trade (-0.9%) from September to October 2017 showed a predominance of negative results, which reached five of the eight activities surveyed.

The largest decreases were in: Other personal and household articles (-3.5%), Fabric, apparel and footwear (-2.7%) and Furniture and household appliances (-2.3%). Hypermarkets, supermarkets, food products, beverages and tobacco, with a change of 0.3%, declined after a sequence of six positive rates, a period that accumulated a gain of 5.3%. Pharmaceutical, medical, orthopedic articles, toiletries and (-0.7%) dropped after advancing 3.3% in September.

The advance of sales against September 2017 include the following sectors: Office and computer equipment and materials (3.4%) and Fuels and lubricants and Books, newspapers, magazines and stationery, both with up 2.4 %.

The downward trend in the extended retail trade (-1.4%) compared to September 2017 was also observed in sales of Vehicles, motorcycles, parts and pieces (-1.9%) and Construction material (-1.0% %).

In comparison with October 2016, the volume of retail increased 2.5%, with six of the eight activities registering a rise in sales. Furniture and household appliances (10.1%), hypermarkets, supermarkets, food products, beverages and tobacco (1.5%) and Pharmaceutical, medical, orthopedic articles, toiletries and cosmetics (6.2%)  exerted the main positive contributions to the overall result.

Office, computer, communication material and equipment (5.2%), fabric, apparel and footwear (4.7%) and other personal and household articles (2.7%) also had a positve impact on the overall result. Fuels and lubricants (-0.9%) and Books, newspapers, magazines and stationery (-2.8%) continued to exert a negative influence.

The segment of Furniture and household appliances, with a 10.1% increase in the volume of sales in relation to October last year, was responsible for the biggest positive impact on the total retail of October 2017. In cumulative terms, the advances were 9.0% in January-October and 5.2% in the last 12 months. The reduction of the interest rate on credit to individuals, in addition to the positive impact of the improvement observed in the labor market, influenced the positive behavior of this sector.

Hypermarkets, supermarkets, food products, beverages and tobacco, with a 1.5% increase compared to October 2016, had the second biggest positive impact. The performance of this activity has benefited from the growth of the real usual earnings and by the deflation of the prices of food at home. The cumulative rate over the year was 0.5% and the cumulative rate for 12 months, with no change, interrupted 30 consecutive months of negative rates.

Pharmaceutical, medical, orthopedic articles and toiletries, with an increase of 6.2%, was the third largest contribution to the overall retail rate. In January-October, the cumulative rate was 1.4%, while the cumulative indicator in the last 12 months, with a change of 0.3%, interrupted 14 months of negative rates.

The activity Other personal and household articles, which includes segments such as department stores, optics, jewelry shops, sporting goods, toys stores, etc., increased by 2.7% in relation to October 2016, exerting the fourth largest positive contribution. The cumulative index from January to October was 1.8% and the cumulative index over the last 12 months (0.7%) went back to a positive result after 22 months of negative changes in a row.

Fabric, apparel and footwear, which increased by 4.7% in relation to October last year, was also the fourth largest contribution in the composition of the general retail rate. The cumulative index in the year was 7.6% and in the last 12 months, 3.3%. With the increase in the real wage bill and apparel prices below the general average, the performance of the activity remained above the general average of the retail. The segment of office, computer and communication material and equipment advanced 5.2% over the same month of the previous year. The cumulative rates were -0.6% in the year and -1.4% in the last 12 months.

Fuels and lubricants, with a decrease of -0.9% in the volume of sales in relation to October 2016, exerted a greater negative contribution to the total retail. In cumulative terms, activity rates were -3.0% for the first ten months of the year and -3.6% for the last 12 months. The increase in fuel prices above the average price change is a relevant factor that has negatively influenced the performance of the sector.

The activity of Books, newspapers, magazines and stationery registered a change of -2.8% in the volume of sales over October 2016, with cumulative rates of -3.6% in the first ten months of the year and -5.3% in last 12 months. The downward trend of this activity has been influenced by the gradual loss of space from print to electronic material, in addition to the impact of higher prices above inflation.

With an increase of 7.5% compared to October 2016, the extended retail trade registered the sixth positive rate, accumulating from January to October a 3.2% increase in sales. The cumulative rate in the last 12 months, in turn, was 1.4%. This performance mainly reflected the behavior of the sales of vehicles, motorcycles, parts and pieces, which showed a 13.6% increase over October 2016: the main contribution to the overall result of the extended retail trade, accumulating a 1.7% change from January to October and -0.8% in the last 12 months. The second largest contribution came from Construction Material, which increased by 18.6% compared to October 2016. In cumulative terms, rates were 8.6% in the first ten months and 6.6% in the last 12 months.

Between September and October, sales fall in 22 of the 27 Federation Units

From September to October 2017, in the seasonally adjusted series, the retail trade declined in 22 of the 27 Federation Units. Roraima (-5.2%), Alagoas (-4.5%) and Mato Grosso (-3, 3%) recorded the lowest rates in terms of magnitude. Minas Gerais (2.1%) stood out among the states that registered positive changes.

Compared to October 2016, retail sales results were positive in all 27 Federation Units, most notably in Rondônia (14.4%), Santa Catarina (13.7%) and Mato Grosso do Sul (11.9%). Regarding the participation in the composition of the retail rate, Santa Catarina (13.7%) and Rio Grande do Sul (9.6%) stood out.

In the extended retail trade, all 27 Federation Units showed positive changes as well in comparison with the same period of the previous year, with a highlight to the volume of sales of Tocantins (26.0%); Amazonas (18.8%); and Mato Grosso (17.9%). As for the participation in the composition of the extended retail rate, the highlights were São Paulo (6.6%) and Rio Grande do Sul (17.8%).