PREVIEW-Chile industrial output seen up 4 pct in June

WHAT: Chile industrial output for June

WHEN: Wednesday, July 28 at 9 a.m. local time (1300 GMT)

REUTERS FORECAST: Median increase 4.0 percent. Seven
analysts participated in the survey, with estimates ranging
from an increase of 1.4 percent to an increase of 7.2 percent.

The steep increase would confirm the world’s top copper
producer’s solid recovery, driven by stronger domestic demand
and improved prospects of the health of global economy that
could boost key exports such as copper, fruit and wood pulp.

Industrial output is seen increasing a seasonally adjusted
2.25 percent in June. May industrial production rose a
lower-than-expected 1.7 percent in seasonally adjusted data,
but a strong 4.2 percent when compared with same month a year

In June 2009, output fell 8.3 percent from the previous
year amid the global financial crisis.

FACTORS TO WATCH: Output is expected to continue positive
in the next few months amid reconstruction of cities and
infrastructure ravaged by a massive Feb. 27 earthquake.

Analysts say Europe’s debt woes could have a limited impact
on the local economy as China, one of Chile’s key trade
partners, continues its solid expansion.

MARKET IMPACT: A jump in industrial output shows strong
domestic demand growth, reaffirming expectations for a steep
central bank rate hike in August, analysts said.

The market continues to bet on another benchmark rate
increase of 50 basis points at the bank’s next policy meeting
on Aug. 12, bringing the rate up to 2.0 percent.

Investing Research

(Writing by Molly Rosbach; Editing by Alonso Soto and Dan

PREVIEW-Chile industrial output seen up 4 pct in June