MEXICO CITY, July 12 (Reuters) - Mexico industrial
production in May rose more than expected, reversing three
months of declines, as an expansion in the factory sector gave
a boost to Latin America's second-largest economy.
Industrial production grew by 1.1 percent in May from April
MXIP=ECI, the national statistics agency said on Tuesday.
Analysts expected to see only a 0.3 percent month-on-month
expansion, while the year-over-year figure MXIPY=ECI grew by
4.6 percent compared to the forecast 3.4 percent
The manufacturing sector expanded in May for its
second-straight month, growing by 1 percent as local factories
stirred to life to meet consumer demand north of the border.
Auto exports, mostly to the United States, expanded by 11.4
percent in June from the same month a year ago, while overall
production was up 6 percent in that time, a national auto trade
group said on Tuesday.
All three other manufacturing sectors -- mining, utilities
and construction -- also recorded May gains. The overall,
month-on-month April production number was also revised upward
to +0.26 from the -0.14 originally reported.
"The May (data) presents a picture of solid but not
exuberant expansion of industrial production," Goldman Sachs
economist Alberto Ramos wrote in a research note, adding that
the auto sector appears to have moved beyond supply chain
disruptions from the Japanese earthquake in March.
In a separate report, Mexican gross fixed investment
expanded 1.4 percent in April MXGFIN=ECI from March, while
the indicator strengthened 7.1 percent from year-ago levels
MXGFI=ECI.
The investment data, a measure of spending on machinery,
equipment and new construction, is a lagging indicator, but the
latest figures point to manufacturers positioning for growth
ahead.
Mexico's economy has been the laggard of Latin America in
rebounding from recession. Brazil, Chile, Colombia and Peru
have all raised interest rates several times this year to cool
their faster-growing economies.
Mexico's economy is limping back from a deep downturn and
unemployment remains well above pre-recession levels.
Traders and economists do not expect the central bank to
raise interest rates before April of next year BOMWATCH.
Source: www.reuters.com
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