MEXICO CITY: Mexican manufactured exports rose in October, rebounding from a recent slump and pointing to renewed health in US appetite for Mexican goods while a jump in imports showed domestic demand remained solid.
Manufactured exports rose 1.46 percent last month compared with September, even as the month-on-month rate of exports fell 0.9 percent due to a drop in oil exports, the national statistics agency said on Monday.
Demand for Mexican-made cars and TVs in the United States has bolstered Latin America's second-biggest economy amid a wider global slowdown. Mexico is on track to outpace the rate of growth in regional rival Brazil for the second year in a row.
Exports of Mexican-made goods dipped in September and auto exports slumped in August, contributing to slower growth in the third quarter. But Monday's data suggests the economy may be growing more strongly than expected near year-end.
"The most difficult patch may have been in the third quarter," said Marco Oviedo, an analyst at Barclays Capital in Mexico City, who said the economy could grow close to 4 percent this year.
In a sign of solid domestic demand, imports of non-oil consumable goods rose nearly 1.2 percent in October compared with September.
The import of goods used by factories to make other products rose 3.5 percent, month-on-month, and capital goods were up 1.40 percent, with both pointing to further export growth. Mexico sends nearly 80 percent of its exports to the United States.
Mexico's central bank is expected to hold its benchmark interest rate steady at 4.5 percent through 2013 as it balances a spike in inflation above its 4 percent limit against the risks from slowing global growth.
The slide in oil exports helped pushed the country's balance of trade into a $776 million deficit in October when adjusted for seasonal swings, compared with a surplus in September. It was Mexico's biggest deficit since September 2011.
In non-seasonally adjusted terms, Mexico posted a trade deficit of $1.65 billion, also the biggest since September last year.
Non-oil exports to the United States rose 18.4 percent in October compared with the same month last year while exports to the rest of the world rose 8.7 percent compared to last year.
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