Retail credit demand up 10.6% in April, continues to point to deceleration

Tuesday, May 10, 2011

Retail credit demand in Brazil increased by 10.6% in April from the same month in 2010, but a quarter-on-quarter comparison shows falling demand by consumers, credit information firm Serasa Experian said in a press release.

Serasa's indicator, which is based on survey data, showed a reverse course from the upward trend recorded in March, as it fell by 3% in April from the previous month.

Overall for the first four months of the year, retail credit demand was up 12.4% compared with the year-ago period, but down from the 12.9% increase recorded in 1Q11.

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According to Serasa economists, the macroeconomic measures implemented by central bank BCB - starting in December last year - to cool down the economy have impacted retail credit demand as banks have increased their interest rates. Serasa said it expects slower retail loan growth throughout the year.