Brazil's retail sales continue descent

Brazil's retail sales for August released yesterday indicate that consumers continue to tighten their belts. The data printed at -0.9% mom, -6.9% yoy. The previous month's data has been revised lower. 

The nascent BRL recovery obviously took a knock and 5 year default swaps (CDS) traded at higher levels. In one sense, poorly printing retail sales data indicates growth is slowing and consumers are reluctant to part with their money, says Commerzbank.