* Economic growth expands 0.45 percent month-on-month
* Sharpest rise since November on strength in industry
* Annual growth notches 1.7 percent
MEXICO CITY, July 25 Mexico's economy expanded
in May by the most in six months, helped by strength in the
industrial sector, and partially making up for April's slump in
Latin America's no. 2 economy.
Mexico's monthly gross domestic product proxy
rose by 0.45 percent in May compared with the prior month,
rebounding from an upwardly revised 0.71 percent contraction in
April, the national statistics agency said on Thursday.
Industry posted a 1.39 percent month-on-month rise, its
fastest pace since June, 2012, while the services sector grew by
0.34 percent from a 0.54 percent contraction in the previous
Mexico's annual economic growth slumped in the first quarter
to its weakest in three years, prompting the government to cut
growth estimates to 3.1 percent for the year, down from last
year's 3.9 percent rate.
But data earlier this month showed Mexican industrial output
rose at its fastest pace in nearly a year in May on stronger
manufacturing and more robust construction activity.
Markets have priced out further interest rate cuts since the
central bank's March cut to a record low, as expectations mount
for the U.S. Federal Reserve to rein in stimulus, which may
weaken the peso further and push up import prices.
On an annual basis, economic activity rose 1.7
percent in the 12 months through May, well below April's
downwardly revised 4.54 percent annual expansion.
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