SANTIAGO: Chile's jobless rate eased slightly in the September to November period while industrial output in November rose more than expected from a year ago, suggesting an interest rate cut by the central bank expected next month could be delayed.
Chilean industrial production rose 2.9 percent in November from October and rose 2.0 percent from a year earlier, the government said on Thursday, beating market forecasts for a 1.8 percent increase from a year earlier.
"An important sector that bounced back compared to last month was industrial manufacturing due to an increase in domestic and external demand for products of various industrial branches," the National Statistics Institute said in a statement. Output was boosted by the beverages and wood pulp sectors and a low base of comparison compared with quake-hit 2010, the institute added.
Chile's jobless rate in the September-to-November period was 7.1 percent, on par with market expectations and below the 7.2 percent rate in the August-to-October period, the agency said.
The jobless rate eased on a pickup in agricultural, real estate and hotel and restaurant employment, as the Southern Hemisphere enters its summer.
"Are we going through a major deceleration, as many are proclaiming? We doubt it," said Bci brokerage in a note to investors. "These figures again end up soothing demands for aggressive rate cuts in the short-term."
The central bank has held its key interest rate at 5.25 percent for six consecutive months but is expected to cut rates early next year as global financial woes begin to sting Chile's export-dependent economy.
"The figures were a positive surprise, though to a certain degree they're compensating for October's weak numbers," said Pedro Tuesta, an economist with 4CAST. "These results should lead some in the market to doubt the central bank will cut rates in January."
The central bank opened the door to a "correction" of its key rate as fallout from Europe's sovereign debt crisis starts to hit Chile, minutes of the bank's December policy meeting showed on Wednesday. The bank last week cut its 2012 growth and inflation outlook, reducing its growth forecast to 3.75 percent and 4.75 percent in 2012, compared with a previous outlook for growth of 4.25 percent to 5.25 percent.
Chile produced 457,981 tonnes of copper in November, down 2 percent from the same month last year, as lower ore grades hit cathode output in the world's top copper producer, the government also said Thursday.
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