Retail Sales Register Record Growth in Brazil in H1

Brazil's retail sales registered a record growth of 10.6 percent in the first half of 2008, according to a study released on Thursday by the Brazilian Institute of Geography and Statistics (BIGS).

The study showed all sectors had an increase in retail sales in the first half of 2008. The communication equipments and office supplies sector had the highest increase up to 30.9 percent, and the vehicles sector increased 22.3 percent.

In June, retail sales grew up 1.3 percent from May, and 8.2 percent up from the same month of 2007. The accumulated rate for the past 12 months reached 10.1 percent.

The revenues grew up 2.5 percent in June, and 15.9 percent in the first half of 2008. The accumulated growth rate for the past 12 months was of 14.5 percent.

Nine out of 10 subsectors registered an increase in sales volume in June. Among those, fuel and lubricant had the highest increase of 2.1 percent.

According to BIGS Services and Trade Coordinator Reinaldo Pereira, the rise in workers' average incomes, a higher credit supply and more job opportunities have contributed to the positive figures.

He added that even though the results were good, the country's growing inflation rate, which has reached 3.64 percent in the first half of the year, has already affected the volume of retail sales.

In June, the sales of food products was up 1.5 percent from the same month of 2007, far lower than the growth rate of 8.4 percent in May.