CNC indicated that, despite the 1.1% decline compared to December, there is a slight increase in investment intentions
In early 2025, the Brazilian retailer sector faced a reduction in confidence, as indicated by (National Confederation of Trade in Goods, Services and Tourism) this Thursday (28.Jan.2025). The ICEC (Trust of the Commerce Entrepreneur) rate (Trust) presented a decrease of 1.1% in January, reaching 109 points.
Compared to the same month of the previous year, there was a decrease of 0.1%, reflecting a moderation in the optimism of traders.
CNC relates this decrease in confidence to the economic challenges faced by the country, as well as high spending characteristic of the period, including taxes such as IPTU and IPVA and school expenses.
Confederation’s analysis points out that the prudence of retailers impacted Icec results, with setbacks under current conditions (-1.7%) and expectations (-1.7%), while investment intentions had a slight increase in increased 0.2%.
“The pressure on costs is a challenge, but the advancement in investments shows retailers’ commitment to overcome current difficulties“DISCOSÉ ROBERTO TADROS, President of the CNC-SESC-SENACE System.
Felipe Tavares, CNC’s chief economist, highlighted interest rates, high taxes, uncontrolled public spending and the dollar on the rise as factors that increase entrepreneurs’ concern. Tavares suggested that traders adopt assertive strategies such as promotions and greater inventory control to face the challenging period.
“It is essential that retailers adapt to successfully browsing this scenario ”said Tavares.
