Monthly Survey of Trade
Retail sales grow 0.6% in July, after falling in the previous month
September 12, 2024 09h00 AM | Last Updated: September 17, 2024 12h07 PM
Retail sales in Brazil grew again in July, after falling in June. The increase was 0.6%, recovering part of the 0.9% loss in the previous month. In the year, from January to July, retail sales have accumulated an increase of 5.1%. In the last 12 months, the cumulative growth is 3.7%. Compared to July 2023, the sector grew 4.4%, marking the 14th consecutive increase. The data are from the Monthly Survey of Trade (PMC), released today (12) by the IBGE.
“There was growth in the first five months of the year that led to a very high level, the highest in the PMC time series, in May. There was a drop in June, but the recovery in July is an adjustment in this trajectory”, explains Cristiano Santos, manager of the survey. With the recovery, the retail level in July was 0.3% below the record, in May.
“This is a widespread recovery across activities, with five sectors showing consistent growth,” the researcher points out. Sales in the Hypermarkets, Supermarkets, Food Products, Beverages and Tobacco group increased 1.7% from June to July, recording the main impact on the overall result. “This is a sector that reflects the behavior of the survey: it has been on a consistent trend throughout the year, falling in June and recovering in July,” says Mr. Santos.
Another highlight of the survey is the 2.1% growth in July in the Other personal and household articles sector. “In this case, it is an even more substantial trend in 2024, after a 2023 of difficult results, with the accounting crisis that hit large stores in the segment,” says the PMC manager.
The other three sectors that followed national retail sales and saw growth compared to the previous month were Office, IT and communication equipment and material (2.2%), Fabrics, wearing appaerl and footwear (1.8%) and Furniture and household appliances (1.4%). Despite the positive change, the Books, newspapers, magazines and stationery group (0.1%) remained close to stability. Only two groups of activities fell: Pharmaceutical, medical, orthopedic and perfumery articles (-1.5%) and Fuels and lubricants (-1.1%).
The PMC also showed that, in extended retail trade, which includes, in addition to retail, the activities of vehicles, motorcycles, parts and pieces, construction materials and wholesale of food products, beverages and tobacco, the sales volume changed by 0.1% compared to June, remaining close to stability, as in the previous month, when it changed by 0.3%. “In the case of extended retail, the most recent performance is of timid changes”, ponders the researcher. In the year to date, extended retail trade has registered an increase of 4.7%, and in the last 12 months, of 3.8%. In the comparison with July 2023, the expansion was 7.2%.
In the year-on-year comparison, retail sales grow for the 14th consecutive month
Retail sales grew 4.4% in July 2024 compared to July 2023. It was the 14th consecutive month of positive results. Six of the eight activities surveyed followed the increase in the indicator: Pharmaceutical, medical, orthopedic articles and toiletries (16.0%), Other personal and household articles (10.6%), Furniture and household appliances (8.1%), Fabrics, wearing apparel and footwear (5.2%), Hypermarkets, supermarkets, food products, beverages and tobacco (3.0%) and Office, computer and communication equipment and material (0.3%). Only the groups Books, newspapers, magazines and stationery (-5.0%) and Fuels and lubricants (-4.3%) saw a decrease.
In extended retail, the three additional sectors had positive results: Vehicles and motorcycles, parts and pieces (20.3%), Construction materials (11.0%) and Wholesale of food products, beverages and tobacco (0.6%).
Sales growth was followed by 15 Federation Units in July
When comparing the results of July and June 2024, the survey shows that 15 Federation Units (UFs) followed the national growth. The highlights were Tocantins (6.7%), Piauí (3.5%) and Paraíba (3.0%). On the negative side, the results of Mato Grosso do Sul (-2.8%), Roraima (-2.4%) and Amapá (-1.7%) influenced. Also in this comparison, in extended retail, there were 14 FUs with positive rates, with Piauí (8.4%), Tocantins (7.0%) and Acre (2.0%) standing out among the increases. At the other end of the spectrum, Mato Grosso do Sul (-4.8%), Maranhão (-1.6%) and Espírito Santo (-1.1%) were the main declines.
In the year-on-year comparison, retail sales grew in 25 states, with Tocantins (18.1%), Paraíba (18.0%) and Piauí (16.4%) among the main increases. Roraima (0.0%) remained stable and there was only one decline: in Rio Grande do Sul (-4.6%). In this comparison between July 2024 and July 2023, extended retail sales recorded 26 states with a positive rate, with emphasis on Goiás (17.2%), Piauí (15.7%) and Paraíba (15.0%). In this index, only Rio Grande do Sul (-0.9%) recorded a decline in extended retail sales.
More about the survey
The PMC produces indicators that allow monitoring the current behavior of retail trade in the country, investigating gross resale revenue in formally constituted companies, with 20 or more employees, and whose main activity is retail trade. Launched in 1995, the PMC provides monthly results on the change in volume and nominal sales revenue for retail trade and extended retail trade (automobiles and construction materials) for Brazil and its states. The results can be found on Sidra. The next PMC release, with the results for August 2024, will be on October 10.
