US Markets

Mexican industrial production rebounds 1.1% in June

Credit: REUTERS/STRINGER

Mexican industrial output rose by 1.1% in June from the previous month, rebounding from a contraction in May, but activity was considerably weaker than a year earlier, data from the national statistics agency showed on Friday.

Adds details from report

MEXICO CITY, Aug 9 (Reuters) - Mexican industrial output rose by 1.1% in June from the previous month, rebounding from a contraction in May, but activity was considerably weaker than a year earlier, data from the national statistics agency showed on Friday.

The seasonally adjusted rise in industrial output, the second in three months, was driven in part by a 2.5% advance in mining, its highest month-on-month jump since January 2018.

Mexico's economy has been sluggish, and narrowly avoided a recession in the first half of 2019, according to a preliminary estimate, which showed gross domestic product grew 0.1% between April and June from the prior quarter.

Compared with 2018, Mexican industry has slowed markedly. Output fell in June by 2.9% from the same month last year, the eighth consecutive annual decline. That reflected, in part, a 6.8% dip in construction and a 5.6% contraction in mining.

"The bigger picture is that the sector remains very weak," Capital Economics analyst Edward Glossop wrote in a report.

Compared with May, construction activity rose 3.1%, production by energy providers and utilities grew 1.1% and manufacturing climbed 0.3%, the statistics agency's data showed.

(Reporting by Noe Torres and Daina Beth Solomon; editing by Jonathan Oatis)

((daina.solomon@thomsonreuters.com; +52 55 5282 7150;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More