Retail sales volumes rose 0.5% in September from August, statistics agency IBGE said on Tuesday, below the 1.10% increase forecast by economists in a Reuters poll, but above August’s 0.2% decrease.
Sales grew 2.1% from the year-earlier period, compared to expectations for a 3.70% increase in the Reuters poll.
The rise in sales volumes in September was driven by the personal use and domestic products segment, which rose 3.5%, IBGE said.
“These results indicate that retail sales have resumed their growth trend, after a momentary drop in August,” said PicPay economist Igor Cadilhac, adding that a heated job market and good credit conditions will keep supporting consumption.
Brazil’s central bank accelerated its monetary tightening pace at its meeting last week, going for a 50 basis-point hike that pushed rates to 11.25%.
Strong economic activity throughout the year, a tight labor market, fiscal concerns and a weakening Brazilian real against the U.S. dollar have been pushing up inflation expectations in Brazil.
Source: Economy - investing.com
