Mexican GDP shrinks as industrial output declines

SLUMPING industrial output pushed the Mexican economy into its steepest monthly decline in nearly two years in October, official statistics agency INEGI revealed yesterday.

Latin America’s second largest economy contracted 0.6 per cent in October from September, the biggest decline since January 2010 and more than analysts expected.

Growth over the twelve months from October 2010 was lower than forecast at 3.68 per cent.

The data trails more recent indications of solid factory out put and retail sales that suggested the economy expanded nearly four per cent in 2011. Still, slowing global growth is expected to weigh on Mexico this year.

Activity in the industrial sector slowed 0.54 per cent compared with the prior month while agricultural activity fell 5.9 per cent and services sector output remained unchanged, INEGI said.