Chile: Economic activity decelerates on the back of contracting mining sector
September 5, 2011
In July, economic activity expanded 4.0% over the same month last year, according to the monthly indicator for economic activity (IMACEC, Indicador Mensual de Actividad Economica). The reading came in below both the 6.2% increase registered in June and market expectations, which had economic activity growing 4.2%. According to the Central Bank, the July deceleration mainly reflected a weaker manufacturing industry and a contraction in the mining sector. A month-on-month comparison corroborates the deceleration suggested by the annual figures, as economic activity dropped 0.26% over the previous month in seasonally-adjusted terms, contrasting the 0.56% increase in June. As a result, annual average growth edged down from 7.3% in June to 7.1% in July. The Central Bank expects economic growth to range between 6.0% and 7.0% this year.