Before the pandemic, trade movement was already falling in February

Even before the coronavirus pandemic was enacted, the trade movement was already weaker in February. The Trade Movement Indicator, which tracks retail sales performance across Brazil, fell 1.5 percent last month in the deseasonalized monthly comparison, according to data from credit firm Boa Vista. In the last 12 months, the indicator has risen 1.3%. Compared to the same month of 2019, retail grew by 0.8%. According to Boa Vista, the drop is a reflection of the labor market that is very fragile and with weak income growth, which implies higher indebtedness, a drop in consumption and the risk of default. In the new context, the trend is of worsening of the indicators.