Brazil retail sales fall less than expected in August

SAO PAULO (Reuters) - Retail sales volumes in Brazil fell less than expected in August from July, government statistics agency IBGE said on Thursday.

Sales in Latin America's largest economy were down 0.3% in the period, while economists polled by Reuters expected a decrease of 0.50%. In July, they had risen 0.6%.

Brazil's retail sector has provided a big boost to economic activity in 2024, and the August figure marks only the second negative monthly reading so far this year, after June also saw a drop.

Seven out of the eight sub-sectors surveyed by IBGE posted month-on-month declines in August, the statistics agency said, with personal and domestic use products the biggest drag with a 3.9% fall.

On the other hand, IBGE added, retail sales grew 5.1% in August from the year-earlier period, compared to expectations for a 3.60% increase in the Reuters poll.

Amid stronger-than-expected economic data, Brazil's central bank kicked off an interest rate-hiking cycle last month with a 25 basis-point increase to 10.75% and signaled more tightening ahead.

(Reporting by Luana Maria Benedito; Editing by Gabriel Araujo)

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