Mexican growth slowed more than expected in the fourth quarter as industry contracted by the most in over two years despite steady services expansion, data showed on Tuesday February 22nd.
The economy MXGDPQ=ECI grew by about 0.5 percent from the prior quarter, below the 0.8 percent rate in the third quarter and expectations of 0.6 percent from analysts in a Reuters poll.
The industrial sector, which has been hit by sinking oil prices and production at state oil giant Pemex [PEMX.UL], fell 0.4 percent compared to the third quarter, its biggest drop since the second quarter of 2013.
Services, which buoyed growth last year, grew by 0.9 percent, slightly below the 1 percent pace of expansion in the third quarter.
Latin America’s No. 2 economy suffered last year from uneven U.S. demand for its exports and recent weakness in U.S. factory output could further drag on Mexico.
Still, improving domestic demand has supported growth despite a dramatic slump in the peso.
Earlier this month, Mexico’s finance ministry and central bank announced 2016 budget cuts and a surprise interest rate hike to shield the peso from a deeper slide and boost investor confidence in Latin America’s No. 2 economy.
But in a client note on Tuesday, Barclays said the moves could create further headwinds for Mexican growth, which it expects will reach 2.3 percent this year.
Compared with a year earlier, the economy MXGDPY=ECI grew by 2.5 percent, on par with analysts’ expectations.
A separate report showed economic activity MXIGAE=ECI was flat in December on a monthly basis and expanded by 2.6 percent in the month compared to December 2014 MXIGDP=ECI.
(Reporting by Alexandra Alper; Editing by Andrea Ricci)
more recommended stories
American family who died in Mexico ‘went to sleep and never woke up,’ cousin says
The four members of an Iowa family who.
Criminals break into schools in Acapulco, steal and cut victims’ hair
On Tuesday March 20, four men broke.
Infrastructure, the big challenge for the next state administration in Yucatán
“The next state government of Yucatan.
Iowa family found dead in Tulum Hotel
The Creston Police Department told WHO-TV that four.
Undocumented Single Mother Faces Deportation in Four Days: Montrealers Outraged at Failure of Sanctuary City
Montreal, March 23 2018 — Montrealers.
Campeche and Yucatán present at Expo ANTAD 2018
Exhibitors that participated in Expo ANTAD.
Mexican women mobilize against sexist violence
In hat and police suit, with.
Hubikú Ecopark: nature, gastronomy and Maya tradition in one place
Located in the municipality of Temozón,.
US State Department removes restrictions for Playa del Carmen
The US State Department through their.
Canadian WestJet launches new Mexico City direct flights
Canadian carrier WestJet is now offering.