Consumption by Brazilians should increase in the coming months, points out CNC

A study prepared by the National Confederation of Commerce (CNC), released last Tuesday (10), shows that retail should end the year with a higher-than-expected sales volume.

Influenced by the release of social programs by the federal government, CNC’s expectation is that consumption in Brazil will grow in the second quarter of 2022, compared to the first months of this year.

For the Confederation, the sales volume will grow 1.5% compared to the first months of the year. In the survey carried out by the entity last month, this expectation was 1.1% for the same period.

The expectation of the economists who prepared the study is that the second quarter of the year will be “irrigated by the availability and extraordinary resources, such as the anticipation of the 13th salary for retirees and INSS pensioners; FGTS withdrawals; and mainly resources deriving from Auxílio Brasil”, says an excerpt from the document.

CNC estimates that Auxílio Brasil and FGTS withdrawals alone should inject R$ 39 billion into retail and that a large part can be converted to consumption by Brazilians in the short term.

Among the sectors that should register the most demand in the coming months are those of office supplies, IT and communication (+13.9%) and bookstores and stationery (+4.7%).

The increase in sales volume presented in the CNC study also took into account the data released, also on Tuesday, which readjusted the sales volume among Brazilians upwards.

According to a survey by the Brazilian Institute of Geography and Statistics (IBGE), retail optimism in relation to increased consumption has risen for the third consecutive month.