SAO PAULO (Reuters) – Brazil’s retail sales fell 1.0% in May from the previous month, government statistics agency IBGE said on Friday, below the 0.0% rise expected by economists polled by Reuters.
Sales for the month also fell 1.0% YoY, missing expectations for a 1.95% rise and marking the first decline in nine months.
IBGE said the monthly sales decline was on top of four positive results for the eight segments surveyed, led by gains in pharmaceutical products and books, newspapers, magazines and stationery maximum.
The agency highlighted that the key indicator has risen 1.3% so far this year.
The results reflected lower inflation, a boost from a rebound in the Brazilian real and government cash, Andres Abadia, chief economist for Latin America at Pantheon Macroeconomics, said in a report. Transfer payments “no longer offset the drag from a tightening in overall financial conditions,” a client note said.