MEXICO CITY: Mexican industrial output climbed unexpectedly in January, posting a third straight monthly rise as factories maintained a solid pace and bolstering the case for interest rates to stay on hold.
Industrial production rose 0.8 percent in January from December, beating the forecast in a Reuters poll for a 0.1 percent dip, the national statistics agency said Tuesday.
Output was 4.2 percent higher than the same period a year ago, also surpassing poll expectations for a 2.9 percent rate and faster than December's 2.8 percent yearly expansion.
The increase was driven by a solid performance in manufacturing, up 0.98 percent in the month, although easing slightly from December's 1.25 percent growth rate.
Expansion in construction activity accelerated to 0.82 percent, more than double the previous month, while mining production fell 0.44 percent.
Solid US employment data should support decent demand for Mexican exports, although the economy is still seen decelerating this year to grow about 3.5 percent.
The Banco de Mexico is expected to keep interest rates on hold at 4.5 percent on Friday and through the rest of the year, according to a Reuters poll and investors' bets in the interest rate swap market..
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