The June IGet index, 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% decrease, while other services contracted by 6%.
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, showed a slight increase of 0.3% for the month, with notable performances in clothing (+2.5%), supermarkets (+2.3%), and fuels (+0.3%). On the other hand, furniture and appliances (-3.1%) and pharmaceuticals (-4.2%) saw declines.
Within the broad index, the automotive, parts, and accessories segment saw a slight growth of 0.5%, while construction materials fell by 2.9%, reflecting the sector’s slowdown.
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.”
