MEXICO CITY Aug 26 Mexico's trade deficit
narrowed in July as factory exports remained steady while
consumer imports sagged amid faltering economic growth in Latin
America's No. 2 economy.
Consumer goods imports dipped 1.69 percent compared with
June, suggesting weaker domestic demand, according to seasonally
adjusted data released on Monday by the national statistics
Mexico's economy slowed in the second quarter from the
first, the first quarter-on-quarter contraction in four years,
which prompted the government last week to cut its growth
estimate for the year to 1.8 percent from 3.1 percent.
Manufactured goods, including automotive parts and motor
vehicles, make up a large part of Mexico's exports.
In July, factory exports edged up 0.03 percent, though
automotive exports fell 0.83 percent compared with June and
adjusted for seasonal swings. Mexico sends nearly 80 percent of
its exports to the United States.
Manufactured exports, excluding vehicles, rose 0.43 percent
compared with the previous month.
Mexico posted a $366 million trade deficit in July when
adjusted for seasonal swings, compared with a revised $417.4
million trade deficit posted in June.
In non-seasonally adjusted terms, Mexico posted a trade
deficit of $1.44 billion last month.
Despite disappointing economic data, Finance Minister Luis
Videgaray has said he expects growth to rebound in the second
half and has stuck to expectations for growth of around 4
percent in 2014.
Monday's data showed imports of capital goods rose 5.59
percent in July, the biggest boost since February on a
seasonally adjusted basis. A rise in imports of capital goods
tends to herald an upcoming boost in industrial output.