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UPDATE 1-Mexico industrial output unexpectedly shrinks in August
October 12, 2016 / 1:37 PM / in a year

UPDATE 1-Mexico industrial output unexpectedly shrinks in August

(Adds details, background)
    MEXICO CITY, Oct 12 (Reuters) - Mexico's industrial
production unexpectedly shrank in August as construction,
utilities and mining contracted while factory output edged
higher, data showed on Wednesday.
    Mexican industrial output fell 0.4 percent in
August from July in seasonally adjusted terms, the national
statistics agency INEGI said, compared with expectations for a
0.1 percent increase in a Reuters poll of economists.
    Mexico's economy shrank in the second quarter, mostly due to
a slump in industry. It was the first time over the past three
years that the economy had shrunk in any quarter compared to the
 preceding three months.    
    Uneven demand for Mexican manufactured exports in the United
States, Mexico's top trading partner, and declining oil
production have weighed on Latin America's No. 2 economy.
    Among components of industrial production, factory output
rose 0.2 percent in August compared to July. Factory production
was up for a fourth month in a row after a sharp contraction
early this year.
    Mexico sends mostly factory-made goods like televisions and
cars to its northern neighbor.
    The construction sector shrank 0.8 percent in August versus
July, down for a second month in a row. Mining, which includes
oil production, was down for a seventh straight month, dropping
by 1.7 percent, its biggest drop in over a year.
    The utilities sector, which includes power, gas and water
distribution, fell by 1.0 percent in August, month-on-month.
    Industrial production was up 0.3 percent year-over-year
 compared with expectations for a 0.7 percent rise. 

 (Reporting by Michael O'Boyle; Editing by Bernadette Baum)

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