Trade has high inventories and weak Christmas designs

About one-third of Brazilian traders still assesses that their stocks are above the appropriate, given the low sales Outlook for the coming months, according to the CNC (National Commerce Confederation for goods, services and tourism).
The projection is that the performance of Christmas this year is 3.5% worse than 2015, says Izis Ferreira, Principal Economist. "Entrepreneurs have made adjustments in their applications since the beginning of this year, and the situation began to evolve from April, when the rate of stock reached the worst level of historical series, but the index is still worrying."
In October, the intention of traders to invest in product supply was 4.2% lower than in the same month of last year. The prospect of new hires in the coming months increased by 21% compared to the previous year.
Still, even with the proximity of Christmas, 44.5% of merchants stated that will reduce the number of employees in the short term. In October 2015, the rate was 59.4%.
Despite the low investment projection, traders '' confidence grew 18.7 percent in October over the same month of 2015.
The index was driven mainly by the improved perception of the economy (high 101 annual%), the performance of the sector as a whole (35.8%) and the company itself (15.7%). The general expectation of entrepreneurs for the next six months grew 21%.