UPDATE 1-Brazil's retail sales down more than expected in November

Recasts throughout

SAO PAULO, Jan 9 (Reuters) - Retail sales volumes in Brazil fell slightly more than expected in November, data from statistics agency IBGE showed on Thursday, as Latin America's largest economy provides some cooling signs amid tight financial conditions.

Sales were down 0.4% in November from October, IBGE said, deeper than the 0.2% drop forecast by economists in a Reuters poll, and slowing from the surprising 0.4% gain registered in the previous month.

The overall result was driven by a drop in sales of home appliances, which slipped 2.8% month-on-month, IBGE said. Five of the eight groups surveyed by the agency posted negative results in November.

On a yearly basis, the data showed, retail sales grew 4.7%, compared to expectations for a 4.3% increase in the Reuters poll.

Brazil's economic activity has surprised on the upside this year, which, coupled with a tight labor market, fiscal concerns, a weaker currency and higher inflation expectations led the central bank to hike interest rates.

The latest sales data "underscores the drag from tight financial conditions, though the still-strong labor market prevented a more dramatic downturn," Pantheon Macroeconomics' chief Latin America economist Andres Abadia said.

"The good times are likely over, given deteriorating domestic fundamentals, and as suggested by some leading indicators."

(Reporting by Gabriel Araujo
Editing by Ros Russell)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))