Chile’s Industrial Production Lower than Expected

Chile’s industrial production in September came in lower than expected by the markets (6% y/y) and RGE (5.2%) at 3% y/y, falling short of its 4.4% y/y three-month moving average (3MMA) through August and showing a continued normalization of industrial activity. Consumer durables cooled to 13.3% y/y (34.9% y/y 3MMA), consumer non-durables eased to 1.5% y/y (5.2% y/y 3MMA) and capital goods decelerated to 13.1% y/y (14% y/y 3MMA). Intermediate goods, although slowed to 3.7% y/y, remained above their 3% y/y 3MMA. Year-to-September, the industrial output remained negative at -0.1% y/y, recovering from a contraction of 8.3% y/y during the same period in 2009.

Seasonally adjusted (SA), industrial production dropped by 0.1% m/m, after expanding by 1.7% m/m SA in August, due to the leveling of inventories in specific industries. According to the INE, in September, there were still some industries which had not yet achieved their pre-earthquake production levels.

Editor’s Note: This post is excerpted from a much longer analysis available exclusively to RGE Clients, LatAm Focus: Brazil’s Central Bank Remains Dovish; Political Uncertainty in Argentina

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