UPDATE 1-Brazil retail sales rise in July for 7th month

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SAO PAULO, Sept 18 (Reuters) Retail sales volumes in Brazil <BRRSL=ECI> rose for the seventh straight month in July as consumer demand continues to grow, climbing a modest 0.5 percent from June, official data showed on Tuesday.

A Reuters poll had forecast a 1.13 percent increase in sales, according to the median estimate of 10 economists. The estimates ranged from 0.2 percent to 1.9 percent.

Only one of the four sectors surveyed for the month-on-month report showed gains in July, the government's statistics agency IBGE said. Supermarket, food, drink and tobacco sales -- all grouped into one category -- edged up 0.5 percent from June.

Clothing and shoe sales dropped 3.4 percent from the previous month, while furniture and home appliance sales fell 1.4 percent. Fuel and fuel byproduct sales slipped 0.5 percent.

When compared with July of 2006, retail sales rose a hefty 9.2 percent, the IBGE said. But that was still lower than the 11.2 percent median forecast of 20 analysts surveyed by Reuters. Estimates ranged from 8.4 percent to 12.5 percent.

All eight segments surveyed for the year-on-year comparison rose, led by 34 percent jump in sales of office and computer equipment. Furniture and appliance sales climbed 18.2 percent from July 2006 and clothing and shoe sales rose 10.4 percent.

Nominal sales, as measured by total sales receipts and unadjusted for inflation, rose 1 percent in July from June and 11.9 percent from July 2006, the IBGE said.

Retail sales volumes, instead of total sales receipts via cash or credit card, exclude inflation that could distort sales comparisons.

For a breakdown of retail sales data from the IBGE's Web site, please go to: here