Mexico's Economy Slows Less than Expected

By Anthony Harrup Features Dow Jones Newswires

Mexico's economic growth slowed less than expected in the second quarter as robust output in services continued to compensate for a modest advance in industrial production.

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Gross domestic product, a broad measure of output of goods and services, expanded at a seasonally adjusted rate of 0.6% from the previous quarter, and was up 1.8% from the second quarter of 2016, according to a preliminary reading published Monday by the National Statistics Institute. The next GDP report is due Aug. 22.

Growth from the first quarter was ahead of economists' expectations of 0.2%, and translated into an annualized rate of 2.4%, a slowdown from the first quarter's 2.7% expansion.

Industrial production edged up 0.1% from the first quarter while services grew 0.8%.

Strength in manufacturing, supported by demand for exports, has offset a sluggish construction sector and lower oil and gas production. Services continue to be supported by employment growth, despite pressure on wages from this year's rise in inflation.

Output compared with a year earlier was affected by the Easter holiday in April, which gave the second quarter fewer working days than in 2016. Adjusted for the calendar effect, output was 3% higher than a year before, the statistics institute said.

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

(END) Dow Jones Newswires

July 31, 2017 10:18 ET (14:18 GMT)