Sales in Brazilian retail trade retreated 0.8% in July, according to data from the IBGE released this Tuesday. The decline was influenced by expensive credit, high household debt, and a slight reduction in income during that month.
The furniture and appliances segment presented the worst performance among the eight groups surveyed, with a 4.9% decline. This sector tends to depend heavily on financing, making it more vulnerable to credit conditions. Right behind came books, newspapers, and stationery, with a retreat of 4.2%, followed by fabrics, clothing, and footwear, which fell 2.7%.
On the positive side, only fuels and lubricants registered growth, with an increase of 0.3%. The overall negative result contrasts with expectations of a new cut in the basic interest rate by the Monetary Policy Committee (Copom) this week, although interest rates are expected to remain high, which tends to continue restricting consumer appetite.
