Mexico industry output grows at fastest pace in 9 months

By: Reuters

Source: in.reuters.com

Mexican industrial output rose the most in nine months in June from May, led by manufacturing gains and underscoring solid growth that bodes for steady interest rates in the coming months.

Industrial production rose a seasonally adjusted 1.3 percent in June from May, the national statistics agency said on Monday, better than expected in a Reuters poll that saw a 1 percent rise after a dip in May, which was revised to a 0.65 percent slide.

The pace of industrial growth was the fastest since last September as the manufacturing sub-component rose 1.6 percent in June from the previous month fueled by export orders.

Mining output, another sub-component of the industrial sector, was flat while utilities slipped, but construction activity increased 1.49 percent, pointing to solid domestic demand.

The pace of industrial growth was the fastest since last September as manufacturing output rose 1.6 percent from the previous month fueled by export orders. Construction activity, another sub-component of the industrial sector, increased 1.49 percent, pointing to solid domestic demand.

"Industrial production performance draws a clear picture of the current sources of the Mexican economy's growth: both external and domestic factors," Barclays analyst Marco Oviedo wrote in a note.

Latin America's No. 2 economy has been shielded from a wider global slowdown that has pushed Brazil to cut interest rates due to U.S. demand for local manufactured goods, although exports have begun to slow and U.S. manufacturing data is weakening.