MEXICO CITY, July 1 Mexican manufacturing sector
growth slowed in June to a 27 month-low on weakness in new
orders and output, a survey showed on Monday, suggesting Latin
America's no. 2 economy remains sluggish.
The HSBC Mexico Manufacturing Purchasing Managers' Index
(PMI) fell to 51.3 in June after adjusting for
seasonal variation, down from 51.7 in May to the weakest pace of
expansion since data collection began in April 2011.
The reading above 50, however, showed continued growth.
"This confirms that the loss of steam in the manufacturing
sector will prevail in the second quarter," HSBC economist
Sergio Martin said in a statement.
However, Martin added that he expected gross domestic
product (GDP) growth to pick up in the second half of the year.
Factory output rose only slightly in June, at its slowest
pace since data collection began.
The rate of growth in new orders also eased to a new
27-month low, while new export orders contracted for the second
month running to notch a survey low.
Manufacturing exports equate to about 25 percent of Mexico's
GDP and the country had been shielded from a weak global economy
by continued U.S. demand for goods such as cars and televisions.
Mexico's growth is seen slowing this year to around 3.1
percent from 3.9 percent last year.
The PMI index, compiled by Markit, is composed of five
sub-indices tracking changes in new orders, output, employment,
suppliers' delivery times and stocks of raw materials and