Chile’s industrial production falls for the fifth month in a row in June 2023

In June 2023, Chile’s industrial production decreased by 2.7% year-on-year, marking the fifth consecutive monthly drop after a 4.5% fall in May, as reported by the National Statistics Institute (INE).

The downturn in the Industrial Production Index (IPI) was due to negative contributions from all three sectors: manufacturing, mining, and electricity, gas, and water.

The Manufacturing Production Index significantly influenced the IPI’s decline, falling 5.2% compared to the same month of the previous year.

The most substantial year-on-year drop was in the production of food items, owing to reduced production of purees, pastas, and fruit or nut pulps.

The Mining Production Index (IPMin) decreased by 0.4% year-on-year in June due to a downturn in all three types of mining activities that make up the index.

Notably, non-metallic mining performance experienced a decline, especially in the production of lithium carbonate, a major export commodity for Chile.

Meanwhile, the Electricity, Gas, and Water Production Index (IPEGA) contracted by 0.9% over twelve months, mainly due to the gas sector.

The INE also released data on the trade and services activity for June.

The Trade Activity Index (IAC) dropped 7.9% year-on-year, and a cumulative contraction of 5.6% was reported for the year’s first half.

On the other hand, the sale of services recorded a growth of 12.2% compared to June 2022, with vehicle rentals and leasing having the most significant influence.

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