Trade resumes falling curve in July, says IBGE

São Paulo-After a slight reaction in June, the Brazilian retail trade went back to swing. In July there were 0.3% retracement against the previous month, signaling that the increase in confidence in some sectors not yet reflected in gains in sales.
The pullback, which was higher than projected by analysts, eventually undermine the 0.3 percent gain in June, compared with may. Compared to the same month of 2015, the Brazilian Institute of geography and statistics (IBGE) reported a fall of 5.3%, worse result for July in the series begun in 2001. "What I can say is that there are three months sales are close to zero, when prior came in fall movements more acute. Stop dropping so intensely is an improvement, but we''re a long way from recovery, "says Isabella Nunes IBGE Economist.
In the analysis by segment, the activities of hypermarkets, supermarkets, food products, beverages and tobacco and fuels and lubricants that-which together accounts for 60% of the market-0.3% drop each presented. Already the retail sales volume expanded-which includes vehicles and construction-material fell 0.5% in June, fifth negative rate followed with 2.5% drop in construction Material. "This is a less adverse than the trajectory of 2015, when the falls imperaram. But there''s a good chance that this year to end without a change in the context of declining trade growth, "economists at the Institute for Industrial Development Studies (Iedi).
For analysts, the stabilization of retail as a whole is beginning to appear, and the segments connected to retail feed follow as the most stable.