WRAPUP 3-Chile industry data soft, reaffirms rate pause view

* Industrial output up 0.3 pct in Nov vs Oct

* Consumption boosts industries; not mining, construction

* Output of copper, key export, dips slightly in November

* Chile economy grew 5.4 pct in November- Reuters poll
(Recasts, adds Reuters poll on Nov economic activity)

By Maria Jose Latorre and Moises Avila

SANTIAGO, Dec 29 (BestGrowthStock) – Chile’s industrial production
(CLIP=ECI: ) rose 2.5 percent in November from a year ago, below
market expectations in a sign of economic moderation that could
prompt the central bank to hold its key rate steady in
January.

Industrial output rose a seasonally adjusted 0.3 percent in
November compared with October, the government said on
Wednesday.

A Reuters poll showed the market expected year-on-year
growth of 2.7 percent in November while the the country’s top
trade association saw seasonally adjusted growth of 2.3
percent.

A slowdown in the economy of the world’s top copper
producer and stable prices could lead the central bank to hold
its benchmark rate at 3.25 percent at its next meeting in Jan.
13, some analysts said.

Matias Madrid, chief economist for Banco Penta, said
economic activity “is setting up a scenario of high probability
for a pause in the normalization of monetary policy in
January.

“Inflation data coming out on Jan. 7 will be crucial for
that decision,” he added.
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A Reuters poll on Wednesday showed the economy of the
world’s top copper producer grew 5.4 percent in November from
the same month a year ago. The median forecast of 19 traders
and analysts shows a slowdown in growth after activity spikes
of 7.5 percent in May and 7.4 percent in August.

Chile has seen its economy surge this year on the heavy
spending to rebuild cities ravaged by a Feb. 27 quake and
record prices for its main export, copper. The central bank
expects Chile’s economy to grow 5.2 percent this year after
contracting 1.5 percent in 2009.

MINING, CONSTRUCTION DIP

The National Statistics Institute said domestic consumption
grew strongly in November, boosting industries with the
exception of mining and construction.

Cellulose and glass production capacity remain below
pre-quake levels, the institute said.

“In general terms a dichotomy is observed again between
offer and consumption indicators,” Bice Inversiones said in a
report to clients. “This is consistent with our view of a
slowdown in economic activity in the last quarter of the
year.”

The brokerage of the financial group Bice said it predicted
the economy grew 5 percent in November.

The country’s copper output dipped 0.3 percent in November
from a year earlier to 467,478 tonnes, the national statistics
institute said.

A month-long strike at the world’s No. 3 copper mine,
Collahuasi, dragged Chile’s mining production down slightly in
November. It added that production has experienced a downward
trend since July.

Industrial production rose a weaker-than-expected 1.7
percent in October from a year earlier, and fell a seasonally
adjusted 0.4 percent that same month. [ID:nN29147247]
(Reporting by Antonio de la Jara and Alonso Soto, Editing by
Chizu Nomiyama and Dan Grebler)

WRAPUP 3-Chile industry data soft, reaffirms rate pause view