Imacec posts its weakest figure of the year in July, dragged down by mining

Chile’s economic activity suffered its steepest setback of the year in July, with the mining sector driving a preliminary 1.5% contraction in the Imacec index.

The figure contrasted sharply with the outlook earlier in the month. The Central Bank’s latest Economic Expectations Survey had pointed to 1.1% growth, but that forecast weakened after National Statistics Institute data showed industrial production falling 5.1%.

Mining recorded the largest decline among the factors cited by the Central Bank, contracting 9.3% in July. The bank said the retreat in mining was the main reason for the month’s weaker economic performance.