Indicators
Chile’s Economic Activity Disappoints, Supporting Rate Cuts
- Activity contracts 0.2% on month, rises 2.3% on year in August
- Central bank cutting key rate to steady uneven activity
Chile's services declined 0.6% on the month in August, the central bank reported.
Photographer: Martin Berbetti/AFP/Getty ImagesThis article is for subscribers only.
Chile’s economic activity unexpectedly contracted in August on a decline in services, corroborating the central bank’s message that more interest rate cuts are on the way.
The Imacec index, a proxy for gross domestic product, fell 0.2% on the month, matching the worst estimate in a Bloomberg survey of analysts that had a median forecast of 0.3% growth. From the year earlier, activity gained 2.3%, the central bank reported Tuesday.