Chile's economic activity falls unexpectedly in July dragged by mining sector

Chile's ​economic activity declined in July, ​central bank data ‌showed on ​Tuesday, missing market expectations due to a slowdown in the key mining ‌sector.

Chile's economic activity declined 1.5% when compared to a year earlier in July,missing a 0.4% expansion forecast from economists polled by Reuters ‌and deteriorating from the previous month when it recorded a ‌2.4% annual expansion. Goods production posted the sharpest decline, falling 3.2% year-over-year. "The result was driven by the performance of the mining sector, particularly copper, ⁠which ​was affected ⁠by lower ore grades, maintenance, and adverse weather conditions," the central bank said in ⁠the report.

The mining sector of the world's largest copper producer registered ​a 9.3% year-on-year decline in July. The IMACEC index, ⁠which accounts for about 90% of the Andean country's gross domestic product, ⁠returned ​to negative territory after a short hiatus in June, the only month in which it posted growth so far ⁠this year.

On a monthly basis, the IMACEC index - which accounts ⁠for about 90% ⁠of the Andean country's gross domestic product - registered a 1.7% decrease, the central bank added.