Chile's economic activity misses forecasts in May despite mining boost

SANTIAGO (Reuters) -Chile's economic activity rose 3.2% in May when compared to a year earlier driven by a strong performance of its key mining sector, but still landed below market forecasts, central bank data showed on Tuesday.

The IMACEC index, which accounts for about 90% of the Andean country's gross domestic product, accelerated from the 2.5% year-on-year increase reported in April but missed the 3.7% expansion forecast by economists polled by Reuters.

The mining sector of the world's largest copper producer posted the main activity jump as it grew 10.3% year-on-year, boosted by higher output of the red metal, the bank said.

"The (annual) IMACEC result was explained by the growth of all its components, with the performances of services and mining the highlights," it added in a statement.

On a monthly basis, economic activity in the Andean country was down 0.2%, the bank said.

"Economic activity remains solid, despite the modest month-to-month decline in May, which followed a decent run," Pantheon Macroeconomics' chief Latin America economist, Andres Abadia, said. "The outlook remains positive."

(Reporting by Fabian Andres Cambero and Aida Pelaez-Fernandez; Editing by Gabriel Araujo)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• A hidden pipeline brings Amazon and Walmart to African shoppers
• US government rescinds $10 billion freeze for 5 states governed by Democrats
• China smartphone shipments fall for fifth straight quarter as costs rise - IDC