In June, in the seasonally adjusted series, the country's retail trade recorded negative changes: -0.7% for the volume of sales and of -0.2% for the nominal revenue. The volume of sales was negative again after increasing in May, whereas the nominal revenue of sales posted its first drop since May 2012. As to the moving average, the volume of sales changed -0.2%, while the revenue registered a rise of 0.4%. In the non-adjusted series, the volume of sales grew 0.8% in relation to June last year, accumulating a high of 4.2% in the first six months of the year and of 4.9% in the last twelve months. For the same indicators, the nominal revenue of sales changed 7.4%, 10.5% and 11.4%, respectively.

The Extended Retail Trade, comprising the retail trade plus the activities of Vehicles, motorcycles, parts and pieces and Construction material, shrank for the second consecutive month, in relation to May's rates, both for the volume of sales (-3.6%) and for the nominal revenue (-3.4%), seasonally adjusted. In relation to June 2013, there was decrease (-6.1%) in the volume of sales and in the nominal revenue (-0.1%). The cumulative rates in the semester and in the year were, respectively: 0.1% and 1.9%, for the volume of sales and 5.7% and 7.4% for the nominal revenue. Further details on the survey can be seen at

https://www.ibge.gov.br/english/estatistica/indicadores/comercio/pmc/.

In June, the volume of sales (seasonally adjusted) decreased in nine out of the 10 activities. The results were: Hypermarkets, supermarkets, food, beverages and tobacco (0.6%); Other personal and household articles (-0.5%); Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics (-0.9%); Fabric, wearing apparel and footwear (-1.0%); Furniture and household appliances (-2.0%); Fuels and lubricants (-2.3%); Construction material (-3.9%); Office, computer and communication equipment and material (-4.2%); Books, newspapers, magazines and stationery (-5.3%); and Vehicles and motorcycles, parts and pieces (-12.9%) (Table 1).

In relation to June 2013 (unadjusted series), four out of the eight retail activities increased. The results, by order of importance as to the overall result, were: 7.9% for Other personal and household articles; 7.7% for Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics; 0.5% for Hypermarkets, supermarkets, food products, beverages and tobacco; 0.1% for Furniture and household appliances; -12.1% for Books, newspapers, magazines and stationery; -7.0% for Office, computer and communication equipment and material; -2.5% for Fabric, wearing apparel and footwear; and Fuels and lubricants with -3.0%.

The activity Other personal and household articles use exerted the highest impact on the retail rate changing 7.9% in the volume of sales in relation to June 2013. Concerning cumulative indexes, the rate for the first semester of the year was 9.6%, and for the last 12 months, 10.2% (Table 3). Such activity, which encompasses several segments (department stores, glasses shops, jewelry shops, sporting good stores and toy stores etc.) was less affected by the reduction of working hours due to the World Cup.

The activity of Pharmaceuticals, medical and orthopedic articles, toiletries and cosmetics, with the second highest contribution to the overall retail rate, recorded a growth of 7.7% compared with June last year, and cumulative rates of 10.1% in the semester and of 10.8% in the last 12 months.  The price behavior of the pharmaceuticals - which in 12 months rose 4.1% against 6.5% of the overall index, according to IPCA – coupled with the essential nature of these products are the main reasons for the positive performance of this segment.

With a 0.5% change in the volume of sales over the same month a year ago, Hypermarkets, supermarkets, food products, beverages and tobacco became the third biggest contributor to the overall index in June. Such a performance was influenced by the reduction of working days in June due to the World Cup holidays. The cumulative indexes were of 3.5% in the year and of 3.4% considering the last 12 months.

Furniture and household appliances, changing 0.1% in the volume of sales in relation to June last year, accounted for the fourth highest contribution to the overall retail rate. This result was influenced by the lower growth pace of credit with free resources, which, according to the Central Bank, in the last 12 months, moved from 16.4% in June 2013, to 11.8% in June this year. The cumulative index of the year was 5.1% and 5.6%, considering the last 12 months.

The sector of Fuels and lubricants, with a change of -3.0% in the volume of sales in relation to June 2013, accounted for the main negative impact over the overall retail rate. As to the cumulative performance of the semester, the change rate stood at 4.1%, and in the last 12 months, at 5.3%. Even though fuel prices were below inflation (4.9% against 6.5%, according to IPCA), the activity registered a drop.

The segment Fabric, wearing apparel and footwear, changing -2.5% in the volume of sales in relation to the same month a year ago, had the second biggest negative contribution to the volume of sales. This result is attributable to the aforementioned reduction of the working days in relation to June last year, even though prices of wearing apparel (4.6%) have been growing below the overall inflation (6.5%), according to IPCA. Concerning cumulative results, the semester rate was -0.8% and, in the last 12 months, it was 1.7%.

The segment of Office, computer and communication equipment and material, accounting for the third major negative contribution to the overall result, changed -7.0% in the volume of sales in June over the same month a year ago. Among the causes of such a performance are the reduction of the growth pace of credit and the reduction of working days, compared to June 2013. Concerning cumulative indexes, the rate for the first semester was -2.9%, and for the last 12 months, 3.6%.

Books, newspapers, magazines and stationery, with -12.1%, exerted the lowest negative influence on the retail result. The cumulative volume of sales in the semester recorded -5.6% and, over the last 12 months, -2.6%. The downward trend of this activity has been influenced by the rise of the prices of stationary items, whose cumulative growth in 12 months reached 8.4%, surpassing, thus, the overall average of 6.5%, according to IPCA.

In the Extended Retail Trade, which includes retail and the activities of Vehicles and motorcycles, parts and pieces and Construction material, the volume of sales seasonally adjusted shrank (-3.6%) in relation to the previous month and also as compared to June 2013 (-6.1%). This performance reflects, specially, the behavior of the sales in Vehicles, motorcycles, parts and pieces, which fell -12.9% over May 2014 - seasonally adjusted, and -18.7% in relation to June 2013. The cumulative rates of this activity were at –7.9% in the first six months and at –4.3% in the last 12 months. Besides the reduction in the number of working days, the activity performance was also influenced by the lower pace of credit and by the household income reduction, which provoked a deceleration of the consumption in this activity.

The segment of Construction material registered the following changes for the volume of sales: -3.9% against the previous month, seasonally adjusted and -4.7% in relation to June 2013. The cumulative rates were: 2.0% in the semester and 4.6% in the last 12 months. The reduced number of working days in the month also impacted the performance of this activity, influencing the duration of construction works and reforms.

Of the 27 Federation Units, 17 recorded highs in relation to June 2013. The positive highlights were: Acre (15.0%); Rondônia (9.9%); Roraima (9.1%); Paraíba (7.4%); and Ceará (7.2%), according to Graph 5. Concerning the contribution to the rate of the Retail Trade, the highlights were, by order, Rio de Janeiro (4.4%); Ceará (7.2%); Bahia (2.7%); Paraíba (7.4%) and Maranhão with 6.2%.

In the Extended Retail, six of the 27 Federation Units registered positive performance rates. The greatest changes in the volume of sales occurred in: Acre (5.1%), Paraíba (4.9%), Rondônia (4.2%); Minas Gerais (3.4%) and Ceará with 2.8%. In terms of impact on the sector’s overall result, the highlights were Minas Gerais (3.4%); Ceará (2.8%); Paraíba (4.9%); Rondônia (4.2%) and Acre with 5.1%. By Federation Units, the volume of sales seasonally adjusted of five states changed positively month on month. The states are: Paraíba (3.9%); Maranhão (1.6%); Rio de Janeiro (0.5%); Rondônia (0.2%) and Roraima with 0.1%.

Comparing Q2/Q1 of 2014 in the seasonally adjusted series, retail fell, moving from 4.5% to 4.0%. Extended retail fell too, from 2.1% to -1.8% (Table 4). 

Out of the 10 activities, two recorded a higher result than that of the previous quarter: Other articles of personal and domestic use (7.5% to 11.7%) and Hypermarkets, supermarkets, food, beverages and tobacco (2.6% to 4.4%). The other activities registered inferior changes in relation to the previous quarter: construction material (7.2% to -2.9%); Vehicles, motorcycles, parts and pieces (-3.7% to -11.7%); Fuels and lubricants (8.1% to 0.3%); Books, newspapers, magazines and stationery (-3.7% to -8.7%); Pharmaceutical and medical goods, cosmetic and toilet articles (12.6% to 7.8%); Office, computer and communication equipment and material (-0.7% to -5.0%); Furniture and domestic appliances (6.5% to 3.8%) and Fabric, wearing apparel and footwear (0.4% to -1.7%).

RESULTS BY SEMESTER

The first semester of 2014 posted a growth of 4.2% in relation to the same period a year ago.  This result stood below that of the second semester of 2013, which achieved 5.4%. The deceleration in the credit pace and the higher IPI taxes over some categories of products contributed to this result.