WRAPUP 2-Chile jobless rate rises, industry weak

(Adds quotes, details)

SANTIAGO, Oct 30 (Reuters) - Chile's unemployment rate in was higher than expected the third quarter, while industrial output rose at its slowest rate this year in September, government data showed on Tuesday.

The data gave new signals of a slowdown in economic growth from the brisk upturn earlier this year and raised doubts the central bank would raise its benchmark interest rate to control rising inflation at its monetary policy meeting in November.

At the same time, copper production, a mainstay of the Chilean economy, soared by more than 20 percent in September compared with the same month a year ago.

Chile's jobless rate in the July-September period was 7.7 percent, above the 7.6 percent posted in the June-August period, the National Statistics Institute (INE) said.

The figure, the lowest rate for the three-month period since 1998, still surprised on the high side, as most analysts had expected a decline due to seasonal factors. The median forecast of seven economists polled by Reuters was for 7.4 percent.

"We've got to take this figure with some calm due to growth in the labor market," said Pedro Tuesta, an analyst with 4Cast in New York. "There are more job seekers, but we've also seen slowing in job creation that's in line with the slower pace of growth we've seen in the last quarter."

LOWER INDUSTRIAL PRODUCTION BUT BUMPER COPPER

The higher-then-expected jobless rate for the period was accompanied by a poor industrial output figure for September.

The INE said industrial production rose 1.3 percent in the month compared with a rise of 4.0 percent in August.

"The production data is completely disappointing," Tuesta said.

The increase was far below the median forecast of six economists polled by Reuters, who had estimated a rise of 4.4 percent, and was easily the lowest monthly figure this year.

"The figures were weak even after taking into account that September 2007 had two less working days than September 2006," said economist Alberto Ramos of Goldman Sachs in report.

"Third-quarter industrial production grew just 3.1 percent year on year, a significant loss of momentum from the more vigorous growth of 4.9 percent in the second quarter," Ramos said.

Analysts say flagging growth will make it harder for the central bank to raise its current benchmark rate of 5.75 percent, despite rising inflation.

"This figure forces me to correct the Imacec (economic growth index) of 4.2 percent for September to closer to 3.5 percent," Tuesta said. "The central bank has all of the economic data it needs to maintain the interest rate."