WRAPUP 2-Chile jobless rate rises, industry weak

Tue Oct 30, 2007 12:40pm EDT
 
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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.  Continued...

 

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