Industrial production in Chile rose 2.0 percent year-on-year in October 2018, reversing from a 3.2 percent decline in the prior month. It is the first gain after three consecutive decreases in industrial activity. Output rebounded sharply for manufacturing (9.1 percent vs -5.6 percent in September), mainly due to production of food products (10.5 percent), namely pork meat; and machinery and equipment (44.2 percent) amid stronger external demand for specialized machinery to work in mines and construction works. Also, utilities posted a 0.4 percent gain, compared to a 1.5 percent decrease in the previous month. Meanwhile, the mining sector plunged (-4.3 percent vs -1.3 percent), led by lower production of copper (-3.1 percent vs 1.1 percent). On a seasonally adjusted monthly basis, industrial production went up 0.2 percent, after an upwardly revised 0.9 percent fall in September. Industrial Production in Chile averaged 1.91 percent from 1997 until 2018, reaching an all time high of 14.05 percent in May of 2000 and a record low of -11.50 percent in February of 2009.
Industrial Production in Chile is expected to be 0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production in Chile to stand at 3.20 in 12 months time. In the long-term, the Chile Industrial Production is projected to trend around 3.40 percent in 2020, according to our econometric models.