Monthly Survey of Trade
Retail sales remain stable in May and cumulative increase in the year hits 0.7%
July 11, 2019 09h00 AM | Last Updated: July 11, 2019 11h53 AM
The volume of sales changed by -0.1% in May, a result that is considered stable, but it increased by 1% against May 2018. Trade recorded an increase of 0.7% in the year, and a cumulative increase of 1.3% in the last 12 months. These results are found in the Monthly Survey of Trade, released today by the IBGE.
According to the survey manager, Isabella Nunes, it is as if year 2019 had not yet started in terms of retail trade, due to the high level of uncertainty faced by businesspeople with regard to future investments and the labor market. That affects, for example, the cumulative index in 12 months, which has been stable for three months.
“Despite an increased stability of the labor market, there are 13 million unemployed persons and 28.5 underutilized workers in Brazil. The employed population has increased, but that is related to the informal labor market, so the quality of income is low and that prevents consumption from expanding out of the sphere of basic needs”, Isabella points out.
In the month, two of the eight trade activities recorded negative rates, thus driving the index downwards. Other personal and domestic articles, which encompasses Internet sales, fell by 1.4%, in May, for the second month in a row, with a cumulative result of -2%. Fuels and lubricants fell by 0.8%, after a hike of 0.6% in April, which made up for most of the previous increase.
The sector of hypermarkets and supermarkets, which account for the main contribution to the survey results, about 50%, recorded a new increase after having been 3.5% down between February and April. “Such increase can be related to the reduction of inflation from food at home, -0.89%, according to the month's IPCA”.
Dynamism in extended retail
Retail trade lacks dynamism in 2019, but the same is not true for extended retail trade (which includes the activities of vehicles and construction material. The sector had a hike of 0.2% in MAy and of 6.4% in comparison with May 2018, reflecting the good results of vehicles (22.3%) and construction material (11.6%).
“Due to the economic crisis in Argentina and the reduction of exports from that country, there has been a movement of outflow of production with better funding conditons [for vehicles]”, Isabella explains.
The reasearcher added that the volume of credit for legal persons aiming at the purchase of vehicles rose from R$1.7 to R$3 billion, between May 2018/2019, according to data from the Central Bank.
By area, 16 of the 27 Federation Units recorded positive results in retail trade, a highligh being Amapá (8,1%). The group of states recording the biggest decreases includes Minas Gerais (-1.5%), Roraima and Rio de Janeiro (both with -1.4%).
