‎Brazil News

Growth is influenced by the positive performance of the service sector, which, in turn, has been driven by tax benefits valid until the end of 2022

 

By Jovem Pan 09/16/2022 12:12 pm

    

CESAR CONVENTI/FOTOARENA/ESTADÃO CONTEÚD

People shopping in mall

Main trade subsectors to grow in the period were vehicles, motorcycles and parts; fabrics, clothing, footwear and accessories; and building material

Retail sales grew 1.4% in August, driven by the positive performance of vehicles, motorcycles and parts, 9.8%, followed by fabrics, apparel, footwear and accessories, 9.3%, and construction material, 0.3%. The numbers surpassed the month of July, which fell by 1%, as shown by the Serasa Experian trade activity indicator. According to Serasa, the month of August marked the highest increase in 2022 in annual variation, 2.66% compared to 2021. The only segments that showed a significant drop compared to the previous month were supermarkets, hypermarkets, food and beverages, down 1.2%. Even with the growth of sales, what draws the attention of the researchers is, despite the hirings being happening, the salary of the employees is increasingly below the correct market value. According to the General Registry of Employed and Unemployed (Caged) of the Ministry of Labor, the average value of employment in the country with a formal contract in the month of July was R$1,926.54, 2.82% below the R$1,982, 55 paid in the same month last year.

 

Already with retraction, which is the decrease in the volume of business, are: furniture, appliances, electronics and computers, -0.5%; supermarkets, hypermarkets, food and beverages and also fuels and lubricants, -0.3%. According to Serasa's economist, Luiz Habib, there is an important point to be taken into account: “Actually, it is not merely a matter of the type of job being generated. Of course this is important. But the main factor that brought down the average income was inflation, which was practically 10 months running above 10%, from the middle of last year until recently”, he explains. Habib also highlights that it is the service sector that helps to heat up other segments of the economy: “The full reopening of the service sector, rehiring manpower, aided by fiscal impulses, which will be in force at least until the end of the year, has given an important result in the short term for the economy, reflecting in the retail sector, as the numbers indicate”, he concludes.