Experts forecast negative July economic activity, driven by declines in mining and manufacturing

Chile’s July economic activity is expected to contract, with mining and manufacturing leading the decline. Experts anticipate a negative Imacec result when the Central Bank releases its monthly indicator.

Figures from the National Statistics Institute showed manufacturing production fell 5.1% in July, while mining output dropped 7.2%. Commerce activity also declined, although by a smaller 0.2%.

The industrial figures pointed to weakness across both major sectors. The Industrial Production Index fell 5.1% year on year, reflecting negative contributions from the Mining Production Index, down 7.2%, and the Manufacturing Production Index, down 4.9%.

Manufacturing’s decline was especially pronounced in coke and petroleum-refining products, whose production fell 25.9% from a year earlier. The data have shaped expectations for the Imacec, which will provide the Central Bank’s broader reading of economic activity for the month.