RIO DE JANEIRO: Retail sales in Brazil jumped in November more than expected, recovering from a consumer spending slowdown that dragged on the growth of Latin America's largest economy.
Retail sales volumes in Brazil rose 1.3 percent in November from October, government statistics agency IBGE said on Thursday.
Sales volumes had been expected to rise 0.5 percent, according to the median estimate of 22 economists in a Reuters survey. Forecasts ranged from 0.2 percent to 0.8 percent.
Brazilian consumers have fueled economic activity in recent years, spurred on by rising wages and expanding credit. But inflation hit a seven-year high last year, eroding Brazilians' purchasing power and households appear hesitant to take on more debt.
Consumer spending slumped in the third quarter for the first time since the end of 2008, leading to stagnant economic growth.
November's retail sales gained 6.8 percent from the year-earlier period more than the 5.3 percent median estimate in the Reuters poll. Forecasts ranged from a gain of 4.5 percent to 6.0 percent.
The IBGE added that nominal sales, as measured by total receipts and unadjusted for inflation, also rose 1.3 percent in November from the month before and gained 10.9 percent from a year earlier. Sales volumes, unlike total receipts via cash or credit cards, exclude inflation which could distort comparisons.
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