Chile: Activity data by sector anticipates an Imacec between 0.4% and 0.8% YoY for August

Summary

In August, Manufacturing decreased by 4.9% YoY, markedly below both our and market expectations (BBVAe: -1.5% YoY). Also, mining production registered a contraction by 0.2% YoY, while retail sales expanded a poor 1.7% YoY (BBVAe: +2.0% YoY). All in all, we estimate the Imacec grew between 0.4% and 0.8% YoY in August, which would be the bottom in the slowdown of the monthly aggregate activity in 2014. Meanwhile, the unemployment rate reached 6.7% in August (BBVAe: 6.6%), explained by deceleration in job-creation growth rate (to +0.7% YoY) and a slight acceleration in labor force growth (to +1.7% YoY). In this regard, we still expect an upward path in the unemployment rate during coming quarters.

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