In May 2016, Retail Trade in the country recorded a change of -1.0% in volume of sales versus the figure in the previous month, in the seasonally-adjusted series. In this same comparison, nominal revenue remained practically stable (-0.1%), making up for the high prices currently in effect. As for the quarterly moving average, the volume of sales once more recorded a negative change of 0.5%, whereas nominal revenue kept its stability (0.2%). In the other comparisons, resulting from the original series (without seasonal adjustment), national retail trade faced, in terms of sales volume, decrease of 9.0% over May 2015 figures, and recorded its 14th negative result in a row. That has led to cumulative results of -7.3%, in the first five months of the year, and of -6.5%, in the last 12 months. For similar comparisons, nominal revenue of sales recorded changes of 2.2%, 4.2% and 3.2%, respectively.

Extended Retail Trade, which encompasses retail trade and also the activities of Vehicles, motorcycles, parts and pieces and Construction material, remained on a downward trend versus the previous month (-0.4%) for the third consecutive time, in the seasonally-adjusted series, with a cumulative decline of 3.1%. In terms of nominla revenue, there was a change of 0.6%, a positive result after two monthy decreases. Regarding May 2016, the changes were -10.2%, for volume of sales, and -2.1%, for nominal revenue. Cumulative rates were: -9.5%, in the year, and -9.7%, in the last 12 months, for volume of sales, and -0.9% and -1.8%, for nominal revenue.

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Six of the eight activities surveyed in retail trade recorded decreases

The decrease in volume of sales, from April to May (-1.0%), in the seasonally adjusted series, took place in six of the eight activities which form retail trade. The main highlights were Other articles of personal and domestic use (-2.4%) and Furniture and household appliances (-1.3%). Other relavant contributions to the may 2016 rate came from: Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (-0.8%) and Fuels and lubricants (-0.4%) and, accounting for less relevant impacts, the decline of sales of Books, newspapers, magazines and stationery articles (-2.7%) and Office, computer and communication equipment and material (-2.0%).

Between April and May 2016, it is Worth mentioning the stability in the sales of Hypermarkets, supermarkets, food products, beverages and tobacco (0.0%), the most relevant sector regarding the overall retail trade index, which repeated the same level of sales as in the previous month and the result of 1.5% observed in Fabric, apparel and footwear, in the same period. Extended retail trade, also in the seasonally adjusted series, kept its negative changes for sales volume between April and May 2016 (-0.4%), but not as low a change as in April (-1.5%). This reduction in the pace of decrease was especially influenced by the performance of Vehicles and motorcycles, parts and pieces, which, after two consecutive decreases and cumulative loss of 7.7%, increased 1.0% versus the April figure, whereas Construction material remains on a downward trend, having changed - 0.4% in this same comparison.

Versus May 2015 (series without adjustment), consideraing the volume of sales, all the activities recorded negative rates, even considering the difference between the number of business days in May 2016 (21) and in May 2015 (20). In order of contribution to the overall rate (-9,.%), the results were: Hypermarkets, supermarkets, food products, bevrages and tobacco (-5.6%); Other articles of personal and domestic use (-15.5%); Furniture and household appliances (-14,6%); Fuels and lubricants (-10.9%); Fabric, apparel and footwear (-13.5%); Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (-2.6%); Office, computer and communication equipment and material (-14.4%); and Books, newspapers, magazines and stationery articles (-24.2%).

Hypermarkets, supermarkets, food products, beverage and tobacco, with a rate of -5.6% for volume of sales in May 2016, versus the same month in the previous year, accounted for the main negative contribution to the formation of the overall Retail Trade rate. In terms of cumulative results, this activity recorded a change of -3.7% in the year, and of -3.4%, in the last twelve months. This negative performance reflects the reduced purchasing power of the population, due to both the reduction of real income and to the inflation observed in the group food products consumed at home, measured by the IPCA.

Other articles of personal and domestic use, which encompasses department stores, jewelry shops, Sporting goods and toy stores, having fallen by 15.5% over May 2015, accounted for the second most negatve impact on the rate of retail trade. Once more we mention the decrease in the wage bill of employed persons and more limitations to credit, which affected sales for Mother's Day in 2016. In the fist five months of the year, the cumulative change was -13.1%, and, forthe last 12 months, -8.0%.

The activity Furniture and household appliances, with a change of -14.6% in volume of sales versus the figure of May last year, represented the third biggest impact on the retail trade rate. Sales in this segment, which depend a lot oncredit, also declined due to the bad performance of Mother's Day sales in 2016 versus May 2015. Cumulative indexes in the month and in the last 12 months were, respectively, -15.3% and -15.9%.

Fuels and lubricants recorded decrease of 10.9% in volume of sales in comparison with May 2015, rand accounted for the fourth biggest negative contribution to the overall retail trade rate. The cumulative increase rate in the year (-10.0%) and that of the last 12 months (-8.7%) also reflect the rise of fuel prices above the average prices in general. Even so, in May 2016, fuel prices recorded the smallest change in 12 months.

The segment of Fabric, apparel and footwear, with a change of -13.5% in relation to the same month a year ago, also accounted for the fourth biggest negative contribution to the overall retail trade rate. This type of activity, which usually reflects a positive performance of the sector because of Mother's Day festivities, this year had a negative result, belwo the overall average, in spite of being helped by the group apparel, whose prices were below the inflation index. Cumulative results declined: -12.7%, in the year, and -11.4%, in the last 12 months.

Pharmaceutical, medical and orthopedic articles, toiletries and cosmetics,  with a rate of  -2.6% in the May 2016/May 2015 comparison, shows the recente price adjustment of medicines. However, due to the essential nature of its products, this sector was the only one to record cumulative increase in the year and in the last 12 months: 0.7% and 1.3%, respectively.

The activity Office, computer and communication equipment and material, with a change of  -14.4% in volume of sales versus figures in May 2015, had little influence on the formation of the overall retail trade rate. The cumulative resulys, with changes of -15.8%, in the year, and of -12.1%, in the last 12 months, may result from prices of computers in 2016, one of the mains items in this activity. 

The trade of Books, newspapers, magazines and stationery articles recorded decrease of 24.2% in volume of sales over May 2015, cwith cumulative rates in the year and in the last 12 months of, respectively, -16.8% and -14.7%. The downward pace of this activity has been influenced by the budget constraints of families and, regarding newspapers and magazines, by the replacement of printed material by electronic media. It is Worth mentioning that the IPCA of May in 12 months recorded figures above inflation for the stationery group.

Considering Extended Retail Trade, in May 2016 there was decrease of 10.2% in volume of sales in comparison with May 2015, the cumulative rate in the first five months of the year was -9.5% and in 12 months, -9.7%. This performance reflects, above all, the behavior of sales of Vehicles and motorcycles, parts and pieces, which recorded a decrease of 13.3%, in relation to May  2015, and the decrease of 10.6% of Construction material, for the same period.  Cumulative results for these activities were, respectively, -13.5% and -13.6% in five months and -16.5% and -11.6% in the last 12 months. These changes were affected by the lower pace of economic activity and also by budget constraints of families, given the decrease of wagebill among the employed population. 

Volume os sales falls in 23 of the 27 Federation Units

By area, in May 2016, 23 out of the 27 Federation Units recorded decrease in the volume of sales, verus figures in the immediately previous month, in the seasonally adjusted series. The negative highlights, in terms of rate, were: Roraima (-6.0%) and Pará (-5.0%). Santa Catarina, with a change of 2.5%, recorded the most significant increase in volume of sales, followed by Rio Grande do Sul (0.8%) and Paraná (0.3%), whereas Mato Grosso do Sul (0.1%) recorded some stability in retail sales from April to May.

Versus May 2015, the decrease of retail sales reached all the 27 states. The highlights, in terms of rate, were: Amapá (-21.5%), followed by Pará (-16.8%); Bahia (-16.6%), Rondônia (-16.5%); Amazonas (-16.0%). As for the participation in the rate composition, the main ones, in order, were: São Paulo (-6.7%), Rio de Janeiro (-11.0%) and Bahia (-16.6%).

In terms of Extended Retail Trade, the 27 federation Units recorded negative results, in terms of sales volume, versus figures in 2015. The main highlights, with highest rates, were Espírito Santo (-20.3%) and Amapá (-20.2%), as seen in Graph 7. As for the negative contributions to the retail trade rate, the main changes were observed in São Paulo (-7.4%), Rio de Janeiro (-12.7%) and Rio Grande do Sul (-11.0%.)