Trade in Minas Gerais fell 7.7% in June, the second decline of the year

September 9, 2022 | 15:15 hours

Trade in Minas Gerais fell 7.7% in June, the second decline of the year

At the national level, this is also the second consecutive negative variation in the sector.

Helena Pontes/IBGE Agency
One of the biggest influences on the June result was a 0.5% drop in the supermarket sector

From May to June 2022, in a seasonally adjusted series, the volume of retail sales in Minas Gerais fell by -7.7%. In Brazil, the decline was more modest, of -1.4% compared to the previous month. With this result, in the year 2022 (from January to June), Minas Gerais represents an increase of 7.3% (4 positive and 2 negative rates), while Brazil recorded an increase of 3.6%, since the beginning of the year.

At the national level, this is also the second consecutive negative change in the sector, which in two months recorded a drop of 0.8% compared to the previous two months. The June result brings the biggest negative change for trade since December last year, when the decline was 2.9%. In the first half of the year, there is an accumulated growth of 1.4% compared to the same period in 2021, and in the last 12 months, a loss of 0.9%. In this last indicator, it is also the second consecutive month in negative territory, which has not happened since August 2017. The data is from the Monthly Trade Survey (PMC), published today (10) by IBGE.

The pullback compared to May expanded seven of the eight activities surveyed in the survey. Two had a greater impact on the general retail sales index: fabrics, clothing and footwear with a drop of 5.4 percent and hypermarkets and supermarkets, food products, beverages and tobacco, a segment that fell by 0.5 percent in the observed period.

“The activity of hypermarkets and supermarkets had a significant impact on inflation throughout the first half of the year. Between April and May, there was a variation of 4% in revenue and 1% in sales volume, which is an indicator where research is already discounting inflation. From May to June, this activity fell by 0.5% in volume, but changed by 0.3% in terms of revenue. This means that there is a smaller amplitude of inflation, but enough for the volume to have a negative variation, despite the income being in the positive field”, explains the head of the research, Cristiano Santos.

The researcher also highlights the decline in the textile, clothing and footwear sector, which is still 9.9% below the pre-pandemic level recorded in February 2020. “This activity had a strong decline from May to June. During the year, there was an increase related to the new strategy adopted by these companies to also launch e-commerce, to make virtual sales more powerful than in the past, since in this sector trying products before buying is very important”, adds the researcher.

The only activity that increased compared to the previous month was pharmaceutical, medical, orthopedic and perfumery products (1.3%). “In this segment, the increase is related to pharmaceutical items and reflects the increase in drug prices. This is the type of product that, most of the time, you cannot replace. This increases the expenditure of the family that may have to spend on this activity and reduces spending on others”, analyzes Cristiano.

In the expanded retail trade, which in addition to retail trade also includes vehicles and construction materials, the decline in the observed period amounted to 2.3%. The sector of vehicles and motorcycles, parts and pieces (-4.1%) and construction materials (-1.0%) also fell.

At the end of the first half of the year, retail sales accumulated a high 1.4%, after a decline of 3.0% in the second half of last year. The growth was accompanied by six activities. Among them, books, newspapers, magazines and stationery (18.4%), fabrics, clothing and footwear (17.2%) and pharmaceutical, medical, orthopedic and perfumery products (8.4%) recorded the biggest changes.

Only two industries continued to decline in the first half of this year: furniture and appliances (-9.3%) and other items for personal and household use (-2.8%). Looking at expanded retail trade, the vehicle and motorcycle, parts and pieces segment grew by 0.4 percent, while the construction materials sector fell by 7.3 percent. Other information can be viewed on the IBGE website.

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