In August, the Monthly Index of Economic Activity (Imacec) grew by 2.3% and experts had estimated an expansion of between 2.5% and 4%.

The Central Bank of Chile announced this Monday the Monthly Index of Economic Activity (Imacec) for the month of September 2024.

According to preliminary information, the Index showed no change (0%) compared to the same month of the previous year.

This was a new disappointment for the market, considering that in the previous month, August, the Imacec grew by 2.3% and experts had estimated an expansion of between 2.5% and 4%.

Furthermore, this growth (2.3% in August) was lower than that of July, when activity surprised with a growth of 4.2%.

Imacec for September 2024

The issuing institute explained that in September 2024 “the seasonally adjusted series decreased by 0.8% compared to the previous month and grew by 1.0% in twelve months.”

The month also “recorded one less business day than September 2023.”

The Imacec result was explained by the growth of services and trade, offset by the performance of goods production. Meanwhile, the decrease in the Imacec in seasonally adjusted terms was mainly influenced by mining and industry.

The non-mining Imacec showed an annual growth of 0.3%, while in seasonally adjusted terms it fell 0.5% compared to the previous month.

Production of goods

The production of goods fell by 2.3% in annual terms, a result that was mainly explained by the rest of the goods, in particular by the lower added value of electricity generation.

Meanwhile, "mining showed growth of 0.2% and industry a decrease of 1.1%," the Central Bank said.

In seasonally adjusted terms, the production of goods showed a contraction of 1.6% compared to the previous month, a result explained by mining and industry, which fell by 2.8% and 1.6%, respectively.

Trade

Commercial activity increased by 2.9% in annual terms. This result was mainly explained by retail sales and, to a lesser extent, wholesale sales.

“In the first, sales in large stores and through online sales platforms stood out. Meanwhile, in wholesale trade, sales of household goods and food increased. Meanwhile, automotive trade fell,” the Bank added.

The seasonally adjusted figures showed no change compared to the previous month.

Services

Finally, services increased by 1.6% in annual terms, a result explained by personal services and, to a lesser extent, by transportation.

The decline in business services partly offset this.

According to the issuing institute, “the seasonally adjusted figures showed a decrease of 0.2% compared to the previous month, mainly due to business services.”