PREVIEW-Chile jobless rate seen easing, industry output up

WHAT: Chile industrial output for September;

Unemployment data for July-September period

WHEN: Thursday, Oct. 28 at 9 a.m. (1200 GMT);

Friday, Oct. 29 at 9 a.m. (1200 GMT)

REUTERS FORECAST: Chile’s industrial output (CLIP=ECI: ) is
seen growing a seasonally adjusted 2.6 percent in September
from a month prior, according to a Reuters poll of five
analysts. Estimates ranged from a 0.9 percent contraction to
4.4 percent growth.

A wider pool of seven analysts saw industrial output for
September growing by 5.1 percent compared to a year earlier.

The unemployment rate (CLUNR=ECI: ) is seen at 8.1 percent
for the July-September period, down from 8.3 percent in
June-August, according to a poll of seven analysts. Estimates
ranged from 8.0 to 8.5 percent.

FACTORS TO WATCH: Analysts expect the latest data to
confirm the internal dynamism of the Chilean economy as it
recovers from the global economic crisis and a devastating
February earthquake.

Recovery in construction and manufacturing is also a key
factor lifting industrial output figures as post-quake
reconstruction gets into full swing.

Unemployment, which didn’t rise as expected during the
southern hemisphere winter, is also benefiting from post-quake
reconstruction, leading analysts to project a gradual decrease
in the July-September period.

The jobless rate is down from nearly 11.5 percent at the
height of the economic crisis last year.

MARKET IMPACT: Analysts see positive data reinforcing an
optimistic outlook for Chile’s strong economic recovery, but
the slight moderation of domestic demand has given the central
bank room to ease the pace of its interest rate increases.

This month the bank slowed the pace of increases to its
benchmark interest rate (CLINTR=ECI: ) to 25 basis points after
four consecutive 50 basis-point increases from a record-low
0.50 percent in June.

A central bank poll released on Wednesday projected another
25 basis-point increase, to 3.0 percent, in November. For more
see [ID:nN27207990].
(Reporting by Brad Haynes and Felipe Iturrieta; Editing by
James Dalgleish)

PREVIEW-Chile jobless rate seen easing, industry output up