(Adds details of retail data, recession)
By Brad Haynes
SAO PAULO, Sept 16 (Reuters) - Retail sales in Brazil fell in July for the sixth straight month as rising unemployment and record-low consumer confidence threatened to deepen the country’s worst recession in 25 years.
Sales volumes fell 1.0 percent in July from June , government statistics agency IBGE said on Wednesday. That was in line with the median estimate in a Reuters poll.
With credit tightening, inflation near 10 percent and the jobless rate at a five-year high, Brazilians have had to cut back family budgets. A political corruption scandal has also soured the national mood and added to doubts that President Dilma Rousseff can turn the economy around.
The July sales drop was the second-biggest monthly decline this year on a seasonally adjusted basis. Sales were down or flat in all of the eight categories in the IBGE index, reflecting the widespread slump that has ended a decade-long boom for Brazilian retailers.
Leading indicators show no sign of a sales rebound.
Consumer sentiment in August broke the record low set in July as pessimism about the future increased, according to the Getulio Vargas Foundation, a business school that has run its consumer survey since 2005. (Reporting by Brad Haynes; Additional reporting by Silvio Cascione; Editing by Lisa Von Ahn)