Brazil’s official statistics agency, IBGE, reported that retail sales volumes fell 0.4% in April 2025 compared to March. This drop surprised analysts, who expected a steeper decline, but it still points to weaker momentum in consumer spending.

Despite this monthly dip, sales grew 4.8% compared to April 2024, indicating that the broader trend remains positive. The data reveal that some retail segments performed better than others.

Sectors like books, clothing, and pharmaceuticals saw modest gains, while fuel, office equipment, and supermarkets experienced declines. The broader retail index, which includes vehicles and construction materials, also declined, reflecting ongoing challenges in big-ticket purchases.

Analysts attribute the mixed results to two main forces. First, Brazil’s labor market remains strong. In April, the country created over 257,000 formal jobs, the highest for that month since 2020.

Rising employment supports household incomes and helps sustain retail spending. Second, high household debt and elevated interest rates continue to limit consumers’ ability to spend freely.

Brazil’s Retail Sales Show Mixed Signals in April as Consumer Debt and Job Growth Collide. (Photo Internet reproduction)

Many families remain cautious, prioritizing essentials and holding back on larger purchases. This push and pull between job growth and consumer debt means retail sales may remain volatile in the coming months.

The figures matter because retail is a key driver of Brazil’s economy. When people spend more, businesses expand and hire, boosting economic growth. When spending slows, it often signals caution about the future.

All figures and claims in this article come from official IBGE data and public labor market records. No information has been fabricated or altered.