WRAPUP 1-Chile factory output fall points to deepening slowdown

viernes 29 de agosto de 2014 14:49 GYT

(Recasts, adds analyst's comments, forecast for July economic growth, context)

By Anthony Esposito

SANTIAGO Aug 29 (Reuters) - Chilean factory output tumbled for the fifth time this year in July, while retail sales growth slowed to a trickle, adding to signs that an economic slowdown in the top copper exporter is deepening.

Manufacturing production fell 4.1 percent in July from a year earlier, government data showed on Friday, a significantly larger drop than a Reuters poll forecast for a 2.3 percent fall.

Retail sales, a gauge of consumer demand, increased 1.5 percent in July versus a year earlier, the slowest pace of growth since at least 2009, when the economy of the world's top copper producer was in the throes of a recession.

The slowdown, sparked by a fall in mining investment and consumer spending, led gross domestic product to grow at its weakest pace in five years in the second quarter.

"In July, a greater deterioration of domestic economic activity was observed ... meanwhile, a continued deceleration in domestic consumption was observed, as reflected in a marked downward trend in retail sales," the INE statistics agency said.

Manufacturing production grew 3.6 percent on a sequential basis in July from June, but in seasonally adjusted terms slipped 0.1 percent in July.   Continuación...