Chilean manufacturing output grew in October at its fastest pace since March last year, more than tripling estimates made by analysts as the production of refined products and food soared.
Manufacturing increased 9.1 percent from the year earlier, compared with the median estimate of 15 economists surveyed by Bloomberg for a gain of 3 percent. Production of oil derivatives led growth with a 27 percent increase followed by output of furniture, food and metal products, the National Statistics Institute said in a report today.
The increase reverses a decline in September and reflects the three additional working days in October from last year. While the data indicates the economy grew at a faster pace than in September, it’s too early to determine whether manufacturing is rebounding after growing just 1.8 percent in the first three quarters, economist Matias Madrid said.
“This is a good result, but we have to wait for more data to see if this marks a new trend,” Madrid, chief economist at Banco Penta, said by phone from Santiago.
Retail sales grew 6.6 percent in October, compared with the 7.7 percent median estimate of analysts surveyed by Bloomberg. Supermarket revenue declined 1.2 percent, the institute said.
Chile’s copper output climbed 1.4 percent in October to 476,202 metric tons compared with a year ago, it said, as Anglo American Plc (AAL) completed an expansion at its Los Bronces mine. BHP Billiton Ltd. (BHP) also completed improvements to its Escondida mine, the world’s largest.
The economy probably grew about 6.4 percent in October from last year after climbing 5.7 percent in the third quarter, Madrid said. Gross domestic product increased 5.7 percent in the second quarter and 5.2 percent in the first.
Policy makers have kept their benchmark interest rate unchanged at 5 percent for 10 straight months as growth exceeds estimates at home and decelerates abroad.
Two-year interest rate swaps, which reflect traders’ views of average borrowing costs, have increased 18 basis points, or 0.18 percentage point, to 5.18 percent as of 10:14 a.m. in Santiago from the Nov. 13 rate decision meeting.
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