Mexico economic activity expand in May

MEXICO CITY: A pick-up in the industrial sector helped Mexico's economic growth beat analysts' expectations in May.

Economic activity rose by 0.97 percent in May from the previous month, while analysts had expected a rise of 0.58 percent.

Compared to a year ago, economic activity grew 4.55 percent in May, the national statistics institute said on Wednesday, while analysts had expected a rise of 4.4 percent.

The industrial sector expanded by 1.12 percent in May while the other two sectors of the economy reported slower growth. The services sector grew 0.8 percent, while the agriculture sector grew just 0.3 percent.

Economists expect Mexico's economy could expand by roughly 4.5 percent this year after posting a 5.5 percent growth rate in 2010 the strongest in a decade.

Still, the fate of the economy is tied strongly to the United States and a broader slow down north of the border could hurt growth in Mexico.

Copyright Reuters, 2011