Mexican industrial output unexpectedly slipped in April, hit by the sharpest drop in crude oil production in nearly seven years even as factories posted their strongest growth since late 2009.
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Industrial output dipped 0.1 percent in April compared to May, the national statistics agency said on Thursday, below expectations for a 0.1 percent expansion in a Reuters poll.
Among key components, oil output fell 5.3 percent compared with the prior month, its steepest drop since August 2007.
Mexican crude production has been declining and a slump in global oil prices has dampened expectations for a tide of investment under the country’s recent opening of its energy sector to private investment.
Factory output rose 2 percent in April compared with May, its biggest jump since November 2009 when the country began to climb out of a deep recession. Mexico sends nearly 80 percent of its exports, mostly factory goods, to the United States.
Latin America’s No. 2 economy grew at its slowest pace in over a year in the first quarter, undermined by flagging oil production and weak U.S. demand for exports.
]The construction sector – which also is a component of industrial production – barely expanded, growing 0.1 percent in April compared to May.
Compared with April 2014, industrial output grew 1.1 percent, expanding at its slowest pace in more than a year, and below expectations of 1.4 percent. (Reporting by Michael O’Boyle Editing by W Simon)