Nominal revenue fell by 1.95% in relation to January ( seasonally adjusted series). Decrease of sales and revenue interrupted four-month sequence of hikes

The results for retail prices in the country were negative in February 2006, with rates of -4.13% for volume of sales and of -1.97% for nominal revenue, in the seasonally adjusted comparison month/previous month. A four-month sequence of positive rates was interrupted. In the remaining comparisons (from the series without adjustment), the rates for volume of sales were: 5.35% over February/05; 5.96% accumulated in the first two months and and 5.08% accumulated in the last 12 months. The nominal revenue had rates of 7.87% in relation to same month in 2005; of 8.71% in the comparison January - February 2006/January – February 2005; and of 9.87% accumulated in the last 12 months (Tables 1 and 2).

The fall (-4.13%) in the volume of sales in February inverted the growing trend of retail trade started in October 2005. There were falls in all the four activities which form the adjusted series (a total of 8 activities form the sector): Textiles, apparel and footwear, with rate of -3.14%; Hypermarkets, supermarkets, food products, beverages and tobacco (-2.44%); Fuels and lubricants (-1.92%) and Furniture and household appliances (-0.04%). The activity Vehicles, motorcycles, parts and accessories, which belongs to retail trade, also fell in comparison with the previous month (-0.06%).

In the comparison February 06/February 05, the volume of sales increased in six of the eight retail trade activities: Hypermarkets, supermarkets, food products, beverages and tobacco (7.27%); Furniture and household appliances (10.45%); Textiles, apparel and footwear (4.83%); Pharmaceutical, medical, orthopedic and perfumery articles (3.95%); Office, computer and communication equipment (43.78%);  Other articles of personal and domestic use (8.57%). There were falls in Fuels and lubricants (-8.48%) and in Books, newspapers, magazines and stationery articles (-12.75%).

In terms of the formation of the February/06 rate for volume of sales of Retail Trade, the main positive impact was Hypermarkets, supermarkets, food products, beverages and tobacco. The rate of 7.27% in comparison with the same month last year is the highest monthly rate of this activity since April/05, probably as a consequence of the reduction of food prices in the last few months, and also of the improvement of employment conditions (according to PME - Monthly Employment Survey). The volume of sales accumulated in the first two months of 2005 increased by 6.01% over the same period in 2005 and the rate accumulated in the last 12 months increased by 3.46%.

The activity Furniture and household appliances was the main contributor to the result of Retail Trade in February, with change of 10.45% in terms of volume of sales in comparison with February 2005. This reflected the continuation of favorable conditions to consumer credit and of loans charged through salary accounts. The increase accumulated in the first two months of 2006 in comparison with the same period in the previous year was 11.59%; concerning the last 12 months, it was 15.04%.

The activity Other articles of personal and domestic use which also encompasses other segments affected by consumer credit (department stores, glasses shops, sporting goods stores, toy stores, etc) remained exerting, in February, the major impact on the result of Retail Trade, despite the significant reduction of the monthly rate (8.57% versus the 26.02% in January). Even so, this activity had the second major accumulated result of retail trade, with growth rates of 17.52% and 15.89% in the first two months and in the last 12 months, respectively. 

The fourth major influence in the formation of retail trade was Office, computer and communication equipment, with change of 43.78% over February last year. The retail trade rates accumulated in the year and in the last 12 months were 74.10% and 64.14%, respectively. Besides credit transactions and loans, the value of the Brazilian currency (Real) in comparison with the dollar also contributed to this positive perfomance. Computer and other imported products became relatively cheaper, as mentioned in the reports of previous months.

The activity Textiles, apparel and footwear was the fifth biggest positive contribution to the volume of retail trade sales, whose increase of 4.83% over February/05. It was the lowest monthly rate of the segment in the last twelve months. In terms of accumulated rates, the changes reached 6.59% in the first two months and 6.41% in the last 12 months.

Still concerning the comparison February 06/February 05, the lowest positive impact on the formation of the overall rate came from Pharmaceutical, medical, orthopedic and perfumery articles, which obtained increase of volume of sales 3.95% above average. In the first two months and in the last twelve months, the results accumulated were 6.36% and 6.94%, respectively.

With negative results for volume of sales, in the comparison February 06/February 05 were the activities: Fuels and lubricants, with change of -8.48%, and Books, newspapers, magazines and stationery articles (-12.75%). Whereas the former has had falling rates for 14 consecutive months, the second inverted the negative result of last month (7.36%).

The reduction of volume of sales of Fuels and lubricants in the first two months of the year (-8.55%) and in the last 12 months (-8.13%) resulted, mainly, from the rise of fuel prices above the overall average. The accumulated rates of Books, newspapers, magazines and stationery articles reached -3.17% in the comparison January-February 06/January-February 05 and 0.21% accumulated in the last 12 months.

At regional level, 22 of the 27 Federative Units obtained positive results in the volume of sales in the comparison February 06/February 05, with the most significant changes registered in Roraima, with rate of 31.21%, Acre (22.87%); Amapá (20.35%); Maranhão (17.04%) and Amazonas (14.77%). Falls occurred in Mato Grosso (-12.11%); Ro Grande do Sul (-4.99%); Rondônia (-0.72%); Pernambuco (-0.66%) and Minas Gerais (-0.26%) – Graph 3. In terms of participation in the formation of the rate of Retail Trade, the highlights, in order, were: São Paulo (8.15%), Rio de Janeiro (7.46%), Bahia (7.94%), Ceará 911.69%), Santa Catarina (3.96%) and Espírito Santo (10.18%).

Still with reference to Federative Units, the seasonally adjusted results for volume of sales, in the comparison month/previos month, show 9 states with positive changes and 18 states with falling rates. The main reductions occurred in Sergipe (-14.83%), Mato Grosso (-14.38%), Rio Grande do Norte (-9.63%), Minas Gerais (-9.52%) and Amapá (-9.33%). The positive highlights were: Acre (7.71%), Roraima (4.00%), Rondônia (2.36%), Alagoas (1.53%) and Santa Catarina (1.40%).

Considering Extended Retail Trade, which is formed by Retail Trade and the activity Vehicles, motorcycles, parts and accessories, the changes observed in the comparison February 06/February 05 were 3.16% for volume of sales and 6.00% for nominal revenue of sales. Accumulated in the year and in the last 12 months, the segment had change rates of 3.59% and 3.01% for volume of sales, and of 6.52% and 8.53% for nominal revenue of sales, respectively. 

In terms of volume of sales, the activity Vehicles, motorcycles, parts and accessories grew 1.08% over February 05. The rates accumulated in the year and in the last 12 months were 0.54% and 0.84%, respectively. On the other hand, the segment Construction Material fell once more: -9.15% in the comparison February 06/05; -5.40% in the first two months of the year and -6.65% accumulated in the last 12 months.

By Federative Unit, still in relation to Extended Retail Trade, the highest performance rates in the volume of sales occurred in Roraima (24.40%); Maranhão (24.28%); Acre (24.00%) and Amapá (21.54%). Considering the impact on the global result of the sector, the highlights were: Rio de Janeiro (14.46%); Bahia (12.64%); Ceará (17.62%) and Espírito Santo (15.44%).