According to IBGE’s Monthly Survey of Trade (PMC), retail trade in July changed by 0.5% in terms of volume of sales and by 1.0% in terms of nominal revenue, with seasonal adjustment in comparison with the previous month, having accumulated increase of 5.6% and 8.1% in the year, respectively.

According to IBGE’s Monthly Survey of Trade (PMC), retail trade in July changed by 0.5% in terms of volume of sales and by 1.0% in terms of nominal revenue, with seasonal adjustment in comparison with the previous month, having accumulated increase of 5.6% and 8.1% in the year, respectively. In comparison with the same month in the previous year, in the series without seasonal adjustment, the percentages of volume of sales were 9.2% in July; 9.7% accumulated in the year; and 8.2% accumulated in the last 12 months. In the same periods, nominal revenue increased by 11.9%; 10.7% and 9.4%, respectively. Furniture and household appliances was the most significant item in retail trade this month:, it changed by 18.2% in terms of volume of sales in comparison with July 2006, accounting for 30% of the overall retail trade rate. 

The positive change of volume of sales (0.5%) and nominal revenue (1.0%) showed, for the seventh consecutive month, the tendency to increase of retail trade, observed by the evolution of the quarterly moving average of the fixed-base indicator. Still considering the seasonally adjusted series, which is calculated for four of the eight activities which form retail trade of sales, the results were: 0.5% for Hypermarkets, supermarkets, food products, beverages and tobacco; -0.5% for Fuels and lubricants; -3.4% for Textiles, apparel and footwear; and -1.4% for Furniture and household articles.

Sales increased in all retail trade

In July, the volume of sales of all retail trade activities increased in relation to July 2006. In order of importance to the overall result, the results were: 18.2% for Furniture and household articles; 4.6% for Hypermarkets, supermarkets food products, beverages and tobacco; 24.2% for Other articles of personal and domestic use; 10.4% for Textiles, apparel and footwear; 9.9% for Pharmaceutical, medical, orthopedic and perfumery articles; 5.0% for Fuels and lubricants; 34.0% for Office, computer and communication equipment; and 9.7% for Books, newspapers, magazines and stationery articles.

Furniture and households appliances were the main highlights in July

The segment which represented the main impact on retail trade in July was Furniture and household appliances, which changed by 18.2%in terms of volume of sales in comparison with the previous year. This performance caused the activity to account for 30% of the overall retail trade rate this month. In terms of accumulated rates, the results were 16.7% in the first seven months and 15.1% in the last 12 months. The positive result of this segment was caused by favorable conditions to credit, real income, employment and prices. The second main influence to the overall result was that of Hypermarkets, supermarkets, food products, beverages and tobacco, which increased by 4.6% in terms of volume of sales in comparison with the same month in the previous year. This way, the segment accounted for 25% of the retail trade rate. In the first seven months of the year and in the last twelve months, this activity had rates of, respectively, 6.6% and 7.2%. This performance reflected the increase of the population’s purchasing power, due, mainly, to the rise of salaries. However, the reduction of the increase rates of these activities may have been influenced by the rise of food products prices, which occurred in the period June/July. According to the IPCA, Food products and beverages changed by 3.2%, compared to 0.5% of the overall index

Other articles of personal and domestic use changed by 24.2%

The third major impact on retail trade was that of Other articles of personal and domestic use, which changed by 24.2% in terms of volume of sales in comparison with July 2006, accounting for 18% of the overall rate. This activity, which encompasses segments such as department stores, glasses shops, jewelry shops, sporting goods stores and toy stores, among others, has been influenced by the overall improvement of economy. Consequently, there were accumulated rates of 23.9% in the period January-July and of 22.2% for the last 12 months.

Fuels and lubricants increase for the seventh consecutive month

Fuels and lubricants were the sixth major positive impact on retail trade, having changed by 5.0% in July, in comparison with the same month in the previous year.  This is the seventh positive rate in this segment after two consecutive years with falling results. This behavior can be seen as a consequence of the stabilization of fuel prices in the last few months and of the improvement of the economic conditions of the country. In relation to results accumulated in the year, the changes were 5.4% for the period between January and July, and 0.6% for the last twelve months. Office material, computer and communication equipment was in the seventh position in the ranking of activities which represented the main impact in July, with increase by 34.0% in comparison with the same month in 2006. In terms of  rates accumulated in the year and in the last twelve months, the results were, respectively, 23.7% and 23.0%. Among the factors which determined this performance are the reduction of prices of this type of product and the growing importance of computer products in the basket of household consumption.

Volume of sales of extended retail trade increased by 13.3%

Considering extended retail trade¹ the changes in July 2006 were 13.3% for volume of sales and 14.8% for nominal revenue. Considering the indexes accumulated in the year and in the last 12 months, the rates were 13.6% and 11.5% for volume of sales and 13.8% and 11.6% for nominal revenue, respectively. The activity Vehicles motorcycles, parts and pieces increased by 22.8% in volume of sales in relation to the same month in the previous year. The rate accumulated in the year reached 22.9%, and, in the last twelve months, 18.0%. The most significant reduction of interest rates and the extended funding periods were the main causes of the increase of sales. In construction material, changes in the comparison July 07/July 06 were 8.7%/ 9.5%, accumulated in the first seven months of the year; and 9.6%, accumulated in the last 12 months. These results reflected the favorable conditions of economy, and the official incentives to construction.

ANALYSIS BY AREA

In July, in comparison with the same month in the previous year, there were decreases in Piauí (-4.2%) and in Rondônia (-3.0%). The highest increases were those of Alagoas (21.9%); Mato Grosso (18.1%); Amapá (16.8%); Maranhão (13.9%); Mato Grosso do Sul (13.4%) and São Paulo (12.4%). The main contributions to the retail trade rate were those of São Paulo (12.4%); Rio de Janeiro (6.9%); Minas Gerais (5.3%); Rio Grande do Sul (6.4%); and  Santa Catarina (10.4%). In relation to extended retail trade, the highest percentages of volume of sales were obtained in Rondônia (34.2%); Amapá (25.5%); Alagoas (23.8%); Acre (23.8%); and Tocantins (22.2%). In terms of impact on the overall result of the sector, the highlights were São Paulo (15.4%); Minas Gerais (10.9%); Rio de Janeiro (8.5%); Paraná (13.3%); and Rio Grande do Sul (9,6%).  From June to July, nine states had increase in the volume of sales, whereas eighteen of them faced decrease. The main increases occurred in Amapá (2.7%); Mato Grosso (2.6%); Acre (2.3%); Paraná (1.0%); and Roraima (0.9%). The main highlights were those in the Federal District  (-4.0%); Tocantins (-2.4%); Rio de Janeiro (-2.0%); and Goiás (-1.8%).