In April, the IGet, Santander’s indicator in partnership with Getnet, which monitors the performance of Brazilian retail commerce, revealed a 0.4% decline in the broad index compared to the previous month. This result marks the second consecutive decline after two months of positive growth. In the year-on-year comparison, the data continues to show growth of 6.1%, highlighting the sector’s resilience throughout the year.
In the broad index, both the automotive, parts, and accessories segment and the construction materials segment had negative results, with declines of -1.6% and -7.3%, respectively. The data reflects a slowdown in the performance of both segments in April.
As for the restricted index, there was a 0.9% contraction compared to the previous month, although the comparison with the same month last year showed a significant increase of 11.5%. The retail composition showed mixed results, with some segments registering growth, such as clothing (0.6%) and furniture and appliances (1.5%). In contrast, other segments showed negative results, such as fuels (-11.5%), other personal consumer goods (-2.7%), and pharmaceuticals (-0.1%).
IGet Services shows stability in April
IGet Services showed stability in April, with a slight decline of 0.1% compared to the previous month. However, the annual comparison revealed a decline of -7.2%, reflecting a scenario of high volatility. Among the service segments, lodging and food services retreated -3.9%, reversing the positive performance recorded in the previous month. On the other hand, the other services segment advanced by 0.5%, after a -2.1% decline in the previous month.
Outlook for Retail and Services
Gabriel Couto, an economist at Santander, comments that the outlook for retail and services is mixed. ‘Restrictive monetary policy should continue to impact economic activity in the short term, but a heated labor market may mitigate a stronger slowdown. The new payroll loan line for private sector workers may help sustain demand in the near future,’ he highlights. However, he warns that pressured inflation and potential impacts from the trade war could limit the sector’s growth.
