Temer-Meirelles recession sinks commerce.
According to economists, everything indicates that retail sales fell for the fourth consecutive month, another negative sign of the Temer-Meirelles recession; the continued deterioration of the labor market and weak credit availability are the main reasons for the result; after a 1% contraction in September, the average projection from 24 financial institutions and consultancies surveyed indicates that, in October, the volume of retail sales (excluding automobiles and construction materials) was 0,8% lower compared to the previous month, after seasonal adjustments.
247 - Retail sales fell for the fourth consecutive month, another negative sign of the Temer-Meirelles recession. Economists believe the continued deterioration of the labor market and weak credit availability are the main reasons for this result. After a 1% contraction in September, the average projection from 24 financial institutions and consultancies surveyed indicates that, in October, the volume of retail sales (excluding automobiles and construction materials) was 0,8% lower compared to the previous month, after seasonal adjustments.
As information They belong to Valor.
"Projections for the Monthly Retail Trade Survey (PMC), to be released today by IBGE, range from a 2,3% drop to a 0,5% increase. Meanwhile, the broader retail sector – which considers, in addition to the eight segments analyzed in the restricted survey, vehicles and construction materials – is expected to experience its eighth consecutive monthly decline, analysts say. The average projection from 21 analysts is a 0,8% drop for the month and a 10,3% drop compared to the same period of the previous year."
According to Luiz Fernando Castelli, an economist at GO Associados, the combination of very high unemployment, scarce credit, and stagnant confidence continues to be the factor explaining the apathy in the retail sector, which shows no sign of recovery in the short term.
According to him, sales fell 1,2% between September and October, indicating another weak quarter for household consumption. "It's still a discouraging end to the year, especially for consumption," he says.