Retail shows recovery, while services still face decline, says IGet

The June IGet, an indicator developed by Santander in partnership with Getnet, brought mixed results for the retail and services sectors. The index of services to families registered a fall of 4% compared to the previous month. In the interannual comparison, the decline was 13.2%, marking the ninth consecutive negative result for the sector. The housing and food segment fell by 4.4%, while other services showed a decrease of 6%.

In the retail sector, the data were more positive. The expanded index registered a fall of 0.4% in June, accumulating three consecutive negative results. However, in the interannual comparison, the growth was 6.1%. The restricted index, in turn, had a slight growth of 0.3% in the month, highlighting the good performance of clothing (+2.5%), supermarkets (+2.3%) and fuels (+0.3%).

Within the expanded index, the auto, parts and parts segment posted a small growth of 0.5%, while construction materials experienced a fall of 2.9%, reflecting the downturn in the sector.

Prospects 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 credit line for private sector workers may offer additional support to demand.However, high inflation and global challenges may pose obstacles to growth in both retail and services”