LATAM WEEKAHEAD-Latam industrial production data tops light week

By Daniel Bases

NEW YORK, June 28 (Reuters) - Chile and Brazil report their industrial production data for May in the coming week with economists expecting activity to decline, but at a slower pace.

Chile reports its industrial production data on Tuesday. Barclays Capital expects a drop of 7 percent while Goldman Sachs has forecast a 9 percent year-on-year decline.

"The forecast assumes a solid month-on-month gain, which would be the first firm indication of improvement in actual data," Barclays wrote to clients.

Brazil reports its industrial production data on Thursday. Morgan Stanley forecasts a drop of 12.2 percent compared with the prior month's decline of 14.8 percent.

The firm said it expects to see "positive sequential growth, despite weak yearly comparisons."

Both Barclays and Goldman Sachs forecast an 11 percent decline for Brazilian industrial production in May.

In Honduras, the army ousted President Manuel Zelaya and threw him out of the country on Sunday in Central America's first military coup since the Cold War. For story, see [ID:nN28366534]

Honduras, home to around 7 million people, is also a big coffee producer, but there was no immediate sign the unrest would affect production.