He consumption extended its crisis in July as the sales fell, in real terms, both in supermarkets and in shopping malls and in wholesale self-service stores. For this last segment, it was the worst month since September 2019.
According to data published by INDEC this Wednesday, sales in wholesale self-service stores collapsed 17.1% compared to July 2023. In this regard, the economic analyst Damian Di Pace He explained in dialogue with Scope that one of the reasons for this decline was the high comparison base, since in the inflationary context of last year, “stocking up was big business“.
“A year ago, stockpiling was better than fixed-term deposits, stocks, everything. Now it is no longer advisable; You can buy a product today that may be on sale next month. because mass consumption is still falling,” he added.
Likewise, in monthly terms the contraction was 1%which is the eighth negative figure in the last nine months. The seasonally adjusted series of the sales index at constant prices thus reached its lowest level since before the Covid-19 pandemic.
The recession and the change in relative prices hit the consumption of goods
The collapse occurs in a context of extremely depressed real wages, despite the slight improvements that have been observed in recent months, mainly for formal workers in the private sector. In addition, said Di Pace, the fact that, within the framework of the changes in relative prices that the Government has been implementing, Consumers are spending a larger proportion of their income on paying for servicesto the detriment of the assets.
At the product level, the largest real falls reported by INDEC, in year-on-year terms, were verified in the consumption of vegetables and fruits, dairy products and beverages.
On the other hand, an increase was verified in the transactions carried out with credit card and a decline in the rest of the means of payment, highlighting a notable contraction in the use of cash.
A major beverage producer group told this media that they do not see a rebound in the short term and that, in relation to last year’s figures, the declines are not below double digits.
Sales in supermarkets and shopping malls also suffered
Meanwhile, sales in the supermarkets accelerated their year-on-year decline in July (-12.3% vs -7.3% in June) and suffered their first monthly reduction since April (-0.1%).
In this case, they highlighted the real losses in electronics and household items, beverages and meats.
As for wholesalers, credit card transactions grew, although so did those made with “other means of payment”, which include virtual walletsAt the same time, cash sales collapsed.
Finally, sales in shopping malls They were unable to sustain the improvement they had seen in June and posted an annual decline of 9% in July.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
