Chile Oct retail sales fall, point to negative '08

SANTIAGO, Dec 1 (Reuters) - Chile retail sales fell in the capital in October, hit by a slowing economy and fading consumer confidence in the face of the international financial crisis, Chile's National Chamber of Commerce said on Monday.

The chamber, known by its Spanish-language acronym CNC, said retail sales in the Santiago metropolitan area -- home to a third of the nation's population -- were down 2.7 percent in October, the same month a U.S. credit crisis appeared to take flight and global markets started to feel its repercussions.

"The worsening international financial crisis and its impacts on the real economy have weakened even more the outlook for the immediate future," the CNC said in a statement.

Chile's central bank in October cut the country's economic growth forecast for 2009 to between 2 and 3 percent from a previous estimate of 3.5 to 4.5 percent.

For 2008, the central bank forecast economic growth of between 4.0 and 4.5 percent, down from a previous forecast of 4.5 to 5.0 percent.

The CNC said it saw 2008 economic growth at the lower end of the range, at 4.0 percent.

The group said retail sales would grow in the last two months of the year, but "2008 will probably come in negative overall."

The fall in October saw losses tempered by improved sales of footwear and clothing and lesser falls in traditional supermarket sales.

In September, retail sales fell 6.9 percent.

For the 10 months through October, retail sales were down on average 0.8 percent. (Reporting by Antonio de la Jara; Writing by Pav Jordan; Editing by James Dalgleish)