FX.co ★ Brazil Retail Sales Post Strongest Gain Since March

Brazil's retail sales experienced a significant uptick in October 2025, rising by 0.5% compared to the previous month. This increase surpassed expectations, which had predicted a 0.2% decline, and followed an upward revision of a 0.2% decrease in September. This marks the most substantial monthly gain since March. Growth was observed in seven out of eight market segments, most notably in office and IT equipment, which surged by 3.2%. Other notable increases were seen in the fuels sector, which rose by 1.4%, and furniture and appliances, which went up by 1.0%. The only sector that experienced a downturn was apparel, which fell by 0.3%. On a regional level, 19 out of 27 states reported monthly growth, with Espírito Santo, Rondônia, and the Federal District showing the highest increases. Within the expanded retail index—which also incorporates vehicles, auto parts, and building materials—there was a 1.1% rise in sales, driven largely by a 3.0% gain in the vehicle sector and a 0.6% increase in construction materials. Year-on-year, the retail trade saw a 1.1% increase, following a 0.8% rise in September.