(Recasts with context, adds details on components)
MEXICO CITY Aug 11 Mexican industrial
production unexpectedly shrank in June, the first contraction
since December, casting doubt on the strength of a recovery in
Latin America's second largest economy.
Industrial activity fell 0.2 percent in June
compared with May, the national statistics agency said on
The figure was below expectations for a 0.19 percent
increase and down from the upwardly revised 0.3 percent
expansion in May.
A weak start to the year prompted Mexico's finance ministry
in May to cut its annual growth forecast for 2014 to 2.7 percent
from 3.9 percent. Analysts have trimmed their outlooks to around
2.6 percent after sluggishness in the second quarter.
Factory output, a component of industrial production, shrank
0.7 percent in June compared with the prior month, its biggest
drop since December. Mexico exports mostly manufactured goods
and sends nearly 80 percent of its exports to the United States.
The component measuring the construction industry, which
contracted sharply last year and shrunk in May, rebounded by 1.2
percent, its strongest reading since last November.
Utilities output was nearly flat compared to the prior
month, while mining dipped 0.6 percent amid a slump in oil
Industrial output rose 2.0 percent in June from
a year earlier, compared with expectations for a 1.7 percent
increase. May's rise was revised upward to 1.9 percent.
(Reporting by Michael O'Boyle; Editing by Paul Simao)