Mexican Industrial Production Posts Modest Growth in May

By Anthony Harrup Features Dow Jones Newswires

Mexican industrial production rose in May from April, its first increase in four months as a pickup in construction offset a slip in manufacturing output, the National Statistics Institute said Wednesday.

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Industrial output rose 0.1% seasonally adjusted from April, and was up 1% from May of 2016.

The increase from a year earlier, helped by a positive calendar effect, followed a 4.2% decline in April, when production was negatively affected by the Easter holiday.

Manufacturing output slipped 0.3% from April, but was up 5% from a year earlier, led by strong gains in production of vehicles, auto parts and electronic goods. Construction rose 2.1% from April and 0.8% from a year before.

Oil and gas production remained a drag on overall industrial activity, slipping 0.1% from April and 8.2% from May of 2016.

Despite an improvement in demand for Mexican factory exports, industrial production overall has remained sluggish, falling 0.4% in the first five months of the year from the comparable period of 2016. Economic growth has relied more on domestic consumption, which has been buoyed by employment growth, and on services.

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Gross domestic product growth is expected to slow this year to around 2% from 2.3% in 2016, according to government and private estimates.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

July 12, 2017 10:09 ET (14:09 GMT)