UPDATE 1-Mexico May industrial output rises more than expected

Fri Jul 12, 2013 9:30am EDT

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* Biggest rise since June 2012, up 1.4 percent


    MEXICO CITY, July 12 (Reuters) - Mexican industrial output
rose at its fastest pace in nearly a year in May on stronger
manufacturing and more robust construction activity.
    Compared to the previous month, May industrial activity
 rose 1.4 percent, well above expectations in a
Reuters poll for no change and a downwardly revised 1.76 percent
contraction in April, the national statistics agency said on
Friday. May's growth was the strongest since June last year.
    Mexico's factories move in near lock step with U.S.
manufacturers, who posted growth in June that bodes well for
Mexico. Recent U.S. job growth should also support demand for
Mexican-made goods.
    Manufacturing, which provides the bulk of Mexico's non-oil
exports, rose 0.98 percent compared to last month, the biggest
rise since last September, while construction grew 2.51 percent
compared to April.
  
    Solid U.S. demand supported Mexican factories amid sluggish
global growth last year, allowing Latin America's No. 2 economy
to notch 3.9 percent growth in 2012, but the pace of expansion
is seen slowing to 3.1 percent this year.   
    Industrial output rose 0.5 percent in May from a
year earlier, in line with expectations and below April's 3.3
percent expansion.
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