Mexico industrial output rises more than forecast

MEXICO CITY: Mexican industrial output rose more than expected in July, helped by the strength of manufacturers such as carmakers.

Industrial production rose 0.5 percent in July from June, the national statistics agency said on Monday. Economists had expected to see a 0.1 percent uptick.

The July increase follows an upwardly revised 0.5 drop in June.

July's output was 3.2 percent higher than the same month last year; analysts had expected a 3.35 percent increase.

Mexico's economy relies on demand in the United States to keep its factories humming. The industrial sector's manufacturing component saw a 1.21 percent increase in July compared to June.

Concerns that slowing growth in the United States could drag down Mexico too have spurred bets that Mexico's central bank could cut interest rates as soon as October.

In a separate report, Mexican gross fixed investment expanded 0.65 percent in June from May, while the indicator strengthened 11.6 percent from year-ago levels.

In May, gross fixed investment was up by 0.71 percent on the month and by 9.2 percent on the year, revised data show.

Copyright Reuters, 2011