UPDATE 2-Chile August industry output rises 1.7 pct vs July

* Chile August industrial output surges 6.9 pct vs yr ago

* Slower growth in retail and commerce sectors
(Adds analyst quote, copper output)

SANTIAGO, Sept 28 (BestGrowthStock) – Chile’s industrial production
(CLIP=ECI: ) rose a seasonally adjusted 1.7 percent in August
compared with July, the government said on Tuesday, slightly
below market expectations for a 2.0 percent increase.

Output rose 6.9 percent in August compared with the same
month last year, way above market expectations for a 4.3
percent increase.

The economy of the world’s top copper producer has steadily
recovered from a massive earthquake in February as local demand
and investment picks up quickly.

The manufacturing sector rose in August partly due to a
lower comparison base as the industry was hit by the global
financial crisis last year, said the National Statistics
Institute, which released the industrial production data.

Still, the key commerce and retail sectors posted lower
growth in August when compared to previous months due to a
decrease in sales of food, beverage and tobacco, the institute
said.

Industrial sales (CLIS=ECI: ) fell 0.2 percent from the
previous year.

“Entering in the fourth quarter now, we could begin to see
a more concrete deceleration of industrial production toward
the end of the year. And it will be reflected even more in the
first half of 2011,” said Fernando Soto, an analyst with
Banchile Inversiones in Santiago.

The output of copper, the country’s main export, rose 1.3
percent in August from a year ago, slower than the 6.3 percent
increase it registered the previous month, the institute said.

Predictions for a slowdown in economic activity in the
fourth-quarter are also in line with market expectations for
the central bank to start slowing the pace of future rate hikes
after it said a stronger peso currency has slowed the pace of
monetary policy normalization. For more see, [ID:nN24245807]

Upcoming unemployment data and inflation figures are seen
key to predict the cetral bank next monetary policy move in
Octuber– traders see the bank raising rates by another 50
basis points, the fifth increase in as many months, to 3.0
percent.

June-August unemployment data is due for release this
Thursday, while and September consumer index price data is
scheduled to be issued on Oct. 8.
(Reporting by Antonio de la Jara and Brad Haynes; Editing by W
Simon )

UPDATE 2-Chile August industry output rises 1.7 pct vs July