Brazil retail sales rise less than expected in May despite World Cup boost
EWZ•Retail sales miss expectations in May
SAO PAULO, July 16 (Reuters) - Brazil's retail sales volumes grew less than expected in May, data from statistics agency IBGE showed on Thursday, with World Cup-related spending only partially mitigating the impact of high borrowing costs.
- Sales rose 0.1% in May from April, following a 1.5% drop in the previous month.
- Economists polled by Reuters had expected a 0.5% increase.
- Five of eight sectors rose in May, IBGE said, with the World Cup boosting sales of sticker albums, clothing, and televisions.
- On an annual basis, retail sales rose 0.4% in May, well below expectations of a 1.15% increase.
Soft figures add to concerns over consumer demand
May's "soft" figures strengthened the case that tight credit conditions are feeding through to consumer demand, according to Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.
Brazil's central bank last month cut its key interest rate for a third straight time to 14.25%, leaving its next steps open.
