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Brazilian retail sales rose a seasonally adjusted 1.5% in February from the month before...
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The IBGE (Brazilian Census Bureau) survey showed sales rose in seven of the ten sectors surveyed, led by a 4.6% increase in sales of cars, motorbikes and auto parts.
Car sales have been boosted by a government tax break but sales growth was not limited to that sector.
Brazil's economy withstood the global slowdown for much of 2008 before succumbing in the fourth quarter when GDP shrunk 5.8%.
But while a crunch in consumer credit has hauled in retail sales from the elevated levels seen in early 2008, income growth continues to sustain demand, said Reinaldo Pereira, who coordinates the IBGE survey.
"Credit is still tight and the crisis is still hurting Brazil, but there isn't a serious problem of unemployment, while incomes are rising and inflation remains under control ," Pereira said.
In the year-on-year comparison, retail sales advanced 3.8% in February, reflecting Brazil's robust economic performance and expanding credit availability in the middle two quarters of 2008.
The solidity of the retail sector is seen preventing a dramatic slowdown in the Brazilian economy in 2009 - a central bank survey published Monday forecast the economy will contract 0.3% this year.
And as fear that the economy will enter into free fall recedes, the central bank probably will no longer feel the need to repeat the emergency 150-point base rate cut made in March, said BES' Santos.
By Alastair Stewart
Of DOW JONES NEWSWIRES
http://online.wsj.com/article/BT-CO-...16-711294.html
IBGE link - http://www.ibge.gov.br/english/presi...52&id_pagina=1
[..]
The IBGE (Brazilian Census Bureau) survey showed sales rose in seven of the ten sectors surveyed, led by a 4.6% increase in sales of cars, motorbikes and auto parts.
Car sales have been boosted by a government tax break but sales growth was not limited to that sector.
Brazil's economy withstood the global slowdown for much of 2008 before succumbing in the fourth quarter when GDP shrunk 5.8%.
But while a crunch in consumer credit has hauled in retail sales from the elevated levels seen in early 2008, income growth continues to sustain demand, said Reinaldo Pereira, who coordinates the IBGE survey.
"Credit is still tight and the crisis is still hurting Brazil, but there isn't a serious problem of unemployment, while incomes are rising and inflation remains under control ," Pereira said.
In the year-on-year comparison, retail sales advanced 3.8% in February, reflecting Brazil's robust economic performance and expanding credit availability in the middle two quarters of 2008.
The solidity of the retail sector is seen preventing a dramatic slowdown in the Brazilian economy in 2009 - a central bank survey published Monday forecast the economy will contract 0.3% this year.
And as fear that the economy will enter into free fall recedes, the central bank probably will no longer feel the need to repeat the emergency 150-point base rate cut made in March, said BES' Santos.
By Alastair Stewart
Of DOW JONES NEWSWIRES
http://online.wsj.com/article/BT-CO-...16-711294.html
IBGE link - http://www.ibge.gov.br/english/presi...52&id_pagina=1
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