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Chile's economy had a weak start to the second quarter as manufacturing production unexpectedly dropped, industrial output grew less than expected and unemployment remained flat in April.
Manufacturing output fell 1.4% from a year ago, compared with economists' forecast for a 0.3% increase. Industrial production rose 0.7%, less than the 1.1% expansion estimated by analysts. Unemployment at 6.9% frustrated analysts who expected a slight improvement in the rate.
Key Insights
- The combined data suggest the economy isn't recovering as fast as expected from a slowdown in the first quarter, when the U.S.-China trade war weighed on its metal exports
- Chile's central bank surprised markets this week when it said it is considering cutting its benchmark interest rate
- Finance Minister Felipe Larrain said Thursday the central bank's debate about whether to cut rates “has merit” given international conditions and a slow start to the year for the Chilean economy
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- Drop of 1.4% in manufacturing production explained mostly by a 4.5% drop in food production and a 67% drop in leather products, related to an increase in imports of these products
To contact the reporter on this story: Daniela Guzman in Santiago at dguzman26@bloomberg.net
To contact the editors responsible for this story: Juan Pablo Spinetto at jspinetto@bloomberg.net, Walter Brandimarte
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