UPDATE 1-Mexico industry output rises 1.3 pct in Dec

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MEXICO CITY, Feb 14 (Reuters) - Mexican industrial output rose a lower-than-expected 1.3 percent in December compared with the same month a year earlier, the government said on Thursday.

Analysts polled by Reuters had forecast an increase of 1.75 percent.

Production moved down 0.18 percent from November, the government said.

Manufacturing, a cornerstone of Mexico's economy, rose 0.9 percent from December 2006.

Mining output rose 2.1 percent, with oil production up 1.6 percent and non-oil production up 2.7 percent. Construction gained 1.8 percent, while utilities rose 4.3 percent.

Mexico's government expects the economy grew 3.2 percent in 2007. (Reporting by Jason Lange; Editing by James Dalgleish)