Note

September 10, 20 - 12:07 pm - Reuters

Retail sales in Brazil rebounded strongly in July, registered highest growth since 2000

Brazil’s retail industry continued to expand in July, with the third increase in sales which rose at the strongest pace for the month, given the easing of measures to contain the coronavirus.

Retail sales rose 5.2% in July over the previous month, the Brazilian Institute of Geography and Statistics (IBGE) reported on Thursday.

It was the third consecutive month of positive results, although it lost strength over the gains of 13.3% in May and 8.5% in June, when sales finally returned to pre-pandemic levels.

Now, retail sales are 5.3% above February’s figures. “Until June, there was a kind of compensation for what happened in the pandemic, so in July the recovery had a surplus of growth,” explained the research manager, Cristiano Santos.

REUTERS/Paulo Whitaker

“The data for June and July are linked to billions of reais that the emergency aid ended up adding to families’ income. It partly flowed to consumption and in the lower classes it made a difference in the consumption of the families,” he added. 

Compared to July 2019, sales increased by 5.5%.

In July, 8.1% of retailers reported an impact on their revenues derived from social isolation measures, 4.1 percentage points below the June figure and 20.0 points below the moment of greatest impact recorded in the pandemic (28.1% of companies in April).