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Wednesday, November 12, 2014

Mexico industrial output unexpectedly slips in Sept

(Reuters) - Mexican industrial production unexpectedly fell in September, dragged down by falling oil output and a dip in construction activity while factories recovered from a slump in the prior month.

Industrial activity MXIP=ECI fell 0.1 percent in September compared with August, the national statistics agency said on Tuesday, below expectations of a 0.3 percent rise in a Reuters poll and a downwardly revised 0.2 percent expansion in August.

Analysts expect Latin America's No. 2 economy to grow 2.3 percent in 2014 after a slump in U.S. growth early this year hit demand for Mexican exports and new taxes weighed on domestic consumption.

Factory output, a component of industrial output, rose 0.3 percent in September from the prior month, rebounding after a contraction in August. Mexico sends nearly 80 percent of its exports, which are mostly factory goods, to the United States.

The component measuring construction, which contracted sharply last year, fell nearly 0.1 percent compared to August. The measure of new roads and bridges fell sharply, down for the second month in a row despite higher infrastructure spending reported by the government.

Utilities output rose 0.6 percent compared to the prior month, while mining shrank 0.7 percent on a drop in oil and gas production from August.

Industrial output MXIPY=ECI rose 3.0 percent in September from a year earlier, compared with expectations for a 3.2 percent increase and August's downwardly revised 1.1 percent annual growth rate.

reuters.com

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