August 24, 2018 / 1:48 PM / 3 months ago

Mexico economy shrinks slightly more than forecast in second quarter

FILE PHOTO: Employees work on the terminal foundations at the construction site of the new Mexico City International Airport in Texcoco on the outskirts of Mexico City, Mexico February 1, 2018. REUTERS/Carlos Jasso/File Photo

MEXICO CITY (Reuters) - Mexico’s economy shrank by 0.2 percent in the second quarter from the previous three-month period, one tenth of a percentage point more than initially forecast in a preliminary estimate, data from the national statistics agency showed on Friday.

In annual terms, the economy expanded 2.6 percent compared with a year earlier. The year-on-year growth was one tenth of a point less than had been predicted in the preliminary estimate, which was published at the end of July.

A breakdown of the data showed that primary activities such as agriculture contracted by 2.1 percent quarter-on-quarter, with industrial production, including manufacturing, slipping by 0.3 percent. By contrast, service activity grew 0.2 percent.

Mexico’s central bank said early this month it believes economic growth will likely come in at the lower end of its forecast for expansion of between 2 and 3 percent this year.

Separately, the statistics agency said the economy contracted by 0.1 percent month-on-month in June.

Reporting by Dave Graham; Editing by Susan Thomas

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