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Retail trade confidence in Brazil sees upturn after six months

Xinhua News,BRASILIA
2020-10-23 09:51

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BRASILIA, Oct. 22 (Xinhua) -- Brazil's Trade Entrepreneur Confidence Index (ICEC) rose 10.5 percent in October to reach 103.1 points, returning to optimistic levels after six months in the doldrums, the National Confederation for the Trade of Goods, Services and Tourism (CNC) said on Thursday.

However, the index saw a 15.1-percent drop on a year-on-year basis.

Jose Roberto Tadros, president of the CNC, highlighted the increasingly optimistic outlook of retailers, especially as the end-of-year holidays approach.

"Even in the context of a pandemic, the outlook for retail performance is better in the last quarter, which will be helped by increased revenue through dates like Black Friday and Christmas," Tadros said.

CNC economist Izis Ferreira said all the components of the survey seemed to follow the so-called "V" or "U" rebound, with the exception of inventory, which registered a 1-percent monthly drop in October.

"This may indicate that the retailer is facing some temporary difficulties in restocking stocks, either due to ... costs, prices in general and the exchange rate, or due to some imbalance in supply and demand as a result of temporary changes in consumer habits," Ferreira said.
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