Brazil retail sales fall 1.5% in April

Brazil's retail sector experienced a 1.5% contraction in April compared to the previous month, with fuel sales being the main driver of the decline, according to government data released by the Brazilian Institute of Geography and Statistics (IBGE).

In a year-on-year comparison, retail sales in April saw a 1.0% increase. Over the last twelve months, the sector has grown by 1.5%, and the first four months of the year show a cumulative expansion of 2.0%. However, the monthly figures reveal a slowdown, with six out of eight analyzed activities recording a decrease. The fuel and lubricant segment led the downturn with a 6.2% drop, followed by personal and household items (-4.6%) and office, computer, and communication materials (-4.5%).

Sales of furniture and appliances also declined by 0.8%. The clothing and footwear, and medical and pharmacy item segments remained nearly stable, both experiencing a slight decrease of 0.1%. On the positive side, supermarkets and food products, which hold significant weight in the index, grew by 1.3%, and the books, newspapers, magazines, and stationery segment increased by 1.1%.

According to Cristiano Santos, head of the IBGE survey, the 1.5% drop in April reflects a consumption adjustment after a strong start to the year. He explained that the same non-essential goods sectors that boosted the index in previous months were responsible for the April decline. As sales had reached record levels earlier in the year, these products are now "giving back" some of the gains. This dip occurs as President Luiz Inácio Lula da Silva's government seeks to stimulate consumption through financial relief measures for families.

“

As sales had reached record levels earlier in the year, these products are now "giving back" some of the gains.