After a robust growth in years preceding 2012, we witness the beginning of stabilization for the retail and consumer segments. According to data on the Trade Confidence Index (ICOM-FGV), the retail segment indicated a slowdown (-3.1%) in the first quarter compared to the same period of the previous year. Among the factors that contributed to this result are (i) the increase in the interest rate, which increased the cost of credit, adversely affecting installment sales and (ii) the lowest wage growth, which reduced the purchasing power of consumers. The expectation of a higher inflation than that announced for the coming months may cause apprehension among consumers and contribute to a slightly lower result for the retail sector in the first half of the year.
Source : Cushman & Wakefield