FX.co ★ Brazil Retail Sales Contract for 2nd Month

In May 2025, Brazil experienced a 0.2% decrease in retail sales compared to the previous month, continuing a downward trend following a revised 0.3% decline in April. This marked the first consecutive decline in retail turnover since the year's beginning. The dip highlights a new challenge in domestic consumption, as high interest rates counterbalance the effects of increased government financial support that bolstered private spending last year. Sales decreased in several categories: fuels and lubricants saw a decline of 1.7% compared to a 1.6% drop in April; books and stationery fell by 2% after a previous increase of 1.4%; and other personal use articles dropped by 2.1%, contrasting with a 0.7% rise in the prior month. However, sales improved in areas such as supermarkets and food retailers, which rose by 0.4% from a previous decline of 0.3%; furniture and electronics, which increased by 2% compared to a 0.3% rise; and pharmaceutical goods, up by 1.7% from a prior 0.3% increase. On an annual basis, retail sales were 2.1% higher, yet this marks a slowdown from the 5.3% growth observed in the previous month.