In Brazil, trade movement posts biggest drop in 16 years

The movement of consumers in stores throughout the country fell 6.6% in 2016 compared with 2015, according to the Serasa Experian Indicator of Trade Activity. This was the worst retail result since the start of the survey, conducted for 16 years.

Previously, the worst result had been posted in 2002, because of the electricity rationing crisis, when it reported a drop of 4.9%. Serasa economists explain that the difficulties faced by consumers, like high credit unions interest rates, high unemployment, and low confidence, have negatively affected retail activity.

The biggest decline was posted in the sector of cars, motorcycles, and auto parts, reporting a drop of 13% compared with the same period last year. The second largest drop was reported in fabric, clothing, footwear, and accessories stores (12.6%). A decrease of 11.1% was posted in furniture, electronics, and computer equipment stores.

Smaller drops were reported in construction material stores and supermarkets. The sector of fuels and lubricants was the only one to report a rise (1.8%).

Translated by Amarílis Anchieta