Brazil's Retail Sales Decline by 0.4% in November, Reports IBGE

Brazil's retail sales experienced a decrease of 0.4% in November compared to the previous month, as reported by the Brazilian Institute of Geography and Statistics (IBGE) on January 9. However, when compared to November 2023, sales increased by 4.7%. In October, the retail sales figure showed a positive adjustment of 0.4%. For the entirety of 2024, retail sales saw an overall increase of 5.0%, while the last twelve months reflected a growth of 4.6%. Additionally, the moving average for the three-month period ending in November rose by 0.2%.

According to Cristiano Santos, the manager of the IBGE retail survey, the November results indicate a stable trend in the retail sector. "The results for November mark the second consecutive month of stability. Notably, among the past five months, only July (0.6%) and September (0.6%) exhibited variations outside the narrow range of -0.5% to +0.5%," he noted.

Out of the eight retail categories analyzed, five showed a decline in November. The categories that registered decreases included:

• Furniture and household appliances (-2.8%)
• Pharmaceuticals, medical supplies, and cosmetics (-2.2%)
• Books, newspapers, magazines, and stationery (-1.5%)
• Other personal and household items (-1.0%)
• Hypermarkets, supermarkets, food products, beverages, and tobacco (-0.1%)

The furniture and household appliances sector experienced the most substantial decline in November, marking its third drop in the last four months.

Conversely, three categories showed positive variations in November compared to October:

• Office equipment, computers, and communication materials (3.5%)
• Fuel and lubricants (1.5%)
• Textiles, clothing, and footwear (1.4%)

In the broader retail sector, which includes additional categories, the volume of sales fell by 1.8% from October to November. Notably, the majority of this sector displayed positive trends:

• Vehicles, motorcycles, parts, and accessories (12.2%)
• Construction materials (4.8%)
• Specialized wholesale of food products, beverages, and tobacco (-7%)

In comparison to November 2023, the retail sector experienced a growth of 4.7%, with five out of the eight analyzed activities showing positive variations. The growth was primarily driven by:

• Pharmaceuticals (10.2%)
• Textiles, clothing, and footwear (8.0%)
• Hypermarkets, supermarkets, food products, beverages, and tobacco (5.4%)
• Other personal and household items (3.4%)
• Fuel and lubricants (1.7%)

On the other hand, categories that experienced declines included office equipment, computers, and communication materials (-4.4%), as well as books, newspapers, magazines, and stationery (-10.6%). The furniture and household appliances sector, however, remained stable with no change (0.0%).