MEXICO CITY: Mexican economic growth slowed in July, but activity in the service sector picked up, official data showed on Monday, suggesting domestic demand is still providing support to Latin America's second-biggest economy.

Adjusted for seasonal factors, the economy grew 0.3 percent in July from June, figures from the national statistics agency showed.

In June, the Mexican economy expanded 0.6 percent compared with the previous month. Primary activities, which include agriculture, fishing and mining, shrank by an adjusted 3.4 percent in July from June, after growth of 6.3 percent in the previous month, the data showed.

But the service sector grew in July by 0.6 percent from June in adjusted terms, up from an expansion of 0.2 percent in the previous month.

That was the strongest monthly growth since May and the second-biggest increase in services this year, the data showed.

Compared with the same month in 2015, the economy grew 1.3 percent in July in unadjusted terms, down from growth of 2.2 percent in the previous month.

Adjusted for seasonal swings, the economy grew 2.4 percent, a tenth of a percentage point more than in June.

Copyright Reuters, 2016