Mexican gross fixed investment falls

MEXICO CITY: Mexico's gross fixed investment fell in August, the first fall in five months, signaling a weaker economy in the second half of the year.

Gross fixed investment a measure of spending on machinery, equipment and new construction fell 0.4 percent in August from July and was up 10.6 percent compared to the same month last year.

The index of imported equipment for investment fell for the first time in six months and construction spending was also down 0.47 percent from July.

Mexico's central bank cut its growth forecasts for this year and next on Thursday and many expect it to cut rates in the coming months unless there is a sudden slump in the peso which may drive up inflation.