The combination of positive factors such as inflation, credit and mass income allowed trade to grow beyond the margin of stability in October, despite the high level of interest rates. The assessment was made by the director of the Brazilian Institute of Geography and Statistics (IBGE), Cristiano Santos, responsible for the Monthly Trade Survey (PMC).
Restricted retail sales – which do not include vehicles, construction materials or cash and carry – rose 0.5% in October compared to September. The sector renewed the all-time high in March, but since then rates have fluctuated between a 0.4% drop (May) and a 0.1% rise (August).
Seven of the restricted retail activities saw their sales increase between September and October: the only exception is fabrics, clothing and shoes (-0.3%). Commenting on the result, Santos highlighted that the rate of 0.5% “leaves the margin of stability and is distributed between activities”.
“In addition, it was a month of coincidence of factors that helped to stimulate consumption, such as inflation, which slowed from 0.48% to 0.09% in September, credit to individuals and also to vehicles, and the mass of income. All the factors that influence consumption moved to the positive side, despite high interest rates.”
Credits to individuals increased by 2.1% in October compared to September, while those intended for vehicles increased by 8.1%. Total revenue, meanwhile, rose 0.9% in the quarter ended October.
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