Mexico October factory survey points to growth

MEXICO CITY, Nov 3 (Reuters) - A Mexican manufacturing sector survey pointed to growth for a fourth straight month in October in a sign that Latin America's second-largest economy may be emerging from a deep recession.

The IMEF factory index rose to 52.9 during last month from 51.7 in September, the Mexican Institute of Financial Executives, or IMEF, said in a report on Tuesday.

Readings of 50 and above signal likely expansion in subsequent months and the index first breached that level in July.

Mexico's economy sank deeply in the first half of 2009 but the government and central bank think it returned to growth in the third quarter.

"It shows that the industrial sector is in recovery phase," the IMEF said.

The fate of the Mexican economy is directly tied to the United States, which buys more than 80 percent of Mexican exports. (Reporting by Jason Lange, Editing by Chizu Nomiyama)