UPDATE 1-Chile Santiago retail sales rise 4.0 pct in May

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SANTIAGO, June 26 (Reuters) - Retail sales in the Santiago metropolitan area rose 4.0 percent in May compared with the same month a year ago, driven in part by strong Mother's Day sales, the National Chamber of Commerce said on Tuesday.

The average annual rate of monthly growth for the five months from January was 2.1 percent, it said.

The Chamber of Commerce said in a statement that the figures show retail sales are continuing to grow overall, but at a slightly slower pace than the 3.3 percent grwoth in the first five months of 2006.

Clothing and shoes were the most dynamic retail sectors, rising 6.6 percent and 6.3 percent respectively and reflecting strong Mother's Day sales as the Chilean economy picked up steam.

The worst performance was in furniture, up only 0.6 percent on the month.

The Chamber of Commerce said it expected retail sales to accelerate for the rest of 2007 as the economy maintains its trajectory and as compared to a slowdown in the second half of last year.