Brazil retail sales down for the first time in nine months By Reuters

SAO PAULO (Reuters) – Brazil’s retail sales fell 1.0% in May compared with the previous month, government statistics agency IBGE said on Firday, missing expectations of a 0.0% increase from economists polled by Reuters.

Sales also decreased 1.0% on a yearly basis in the month, below an expected 1.95% rise, marking the first drop in nine months.

The monthly decrease in sales, IBGE said, came on the back of four positive results of the eight segments surveyed, with pharmaceutical products and books, newspapers, magazines and stationery posting the biggest rise.

The agency highlighted the key indicator has jumped 1.3% so far this year.

The result reflects that a lower inflation, the boost from the Brazilian Real rebound, and government cash transfers are “no longer offsetting the drag from tighter financial conditions at the headline level,” Pantheon Macroeconomics’ chief economist for Latin America, Andres Abadia, said in a note to clients.