The June IGet indicator, developed by Santander in partnership with Getnet, showed mixed results for the retail and services sectors. The household services index recorded a 4% drop compared to the previous month. Year-over-year, the decline was 13.2%, marking the ninth consecutive negative result for the sector. The accommodation and food segment saw a 4.4% decline, while other services showed a 6% contraction.
In the retail sector, the data was more positive. The broad index recorded a 0.4% drop in June, accumulating three consecutive negative results. However, year-over-year growth was 6.1%. The narrow index, in turn, saw a slight increase of 0.3% for the month, with notable performances in clothing (+2.5%), supermarkets (+2.3%), and fuel (+0.3%). On the other hand, furniture and appliances (-3.1%) and pharmaceuticals (-4.2%) showed declines.
Within the broad index, the automobiles, parts, and accessories segment saw a small growth of 0.5%, while construction materials suffered a 2.9% drop, reflecting the slowdown in the sector.
Outlook for Retail and Services
Gabriel Couto, Economist at Santander, commented on the outlook for the sectors: “Although restrictive monetary policy continues to affect economic activity, the heated labor market should help mitigate a stronger slowdown. The new payroll loan line for private sector workers may provide additional support to demand. However, high inflation and global challenges could pose obstacles to growth for both retail and services.”
