Extended retail revenue increased 4.5% in May and reached the best result since March 2015
The National Confederation of Trade in Goods, Services and Tourism (CNC) revised its projected growth in retail sales in 2017 from 1.2% to 1.6%, following the result of the Monthly Trade Survey (PMC) of the month Of May, released on Wednesday (12) by the Brazilian Institute of Geography and Statistics (IBGE).
According to the survey, increased retail revenue (which also includes construction materials and vehicles and parts) posted a 4.5% increase compared to May last year. This was the best result since March 2015, when there was a 5% increase in retail revenue.
According to economist Fabio Bentes of the CNC, the sustainable recovery of the sector remains more dependent on the improvement of employment conditions and interest rates more compatible with the recent trajectory of inflation.
"Once this expectation is confirmed, the sector will finally grow again after three years of downturns, after which the monthly level of sales has returned to levels at the beginning of 2010," he said.
Of the ten segments surveyed by the PMC, only two recorded decreases compared to May 2016: fuels and lubricants (-0.9%) and bookstores and stationery stores (-1%).
Considering the segments that had positive results, the most notable were furniture and appliances (13.8%), construction materials (9.3%), computer and communication equipment (8.8%) and clothing And footwear (5%).
The analysis of the CNC also shows that three factors have contributed to greater improvements in these segments: the scarcity of demand, which caused a growth of prices lower than the National Broad Consumer Price Index (IPCA); Partial recovery of credit; And withdrawals from dormant FGTS accounts, which had a positive, albeit temporary, impact on sales.
Source: Portal Brasil, with CNC information