Mexico Industry Output Falls More Than Forecasted Eric Martin and Nacha Cattan - Bloomberg News
go to original May 12, 2013

Mexico’s industrial production fell three times more than analysts forecast in March, reinforcing expectations that the central bank will cut interest rates for the second time since 2009 later this year.

Output slid 4.9 percent from a year earlier, the biggest decline since the end of the 2009 recession and more than the 1.4 percent median estimate of 16 economists surveyed by Bloomberg. Manufacturing contracted 5.8 percent and construction fell 5.2 percent, the national statistics institute said on its website today.

The central bank unexpectedly cut its benchmark interest rate by half a point to a record low 4 percent on March 8 as growth slowed. In April, policy makers left the rate unchanged after inflation exceeded the upper limit of their target range. Inflation will slow in the second half, the central bank said in the minutes of their April 26 meeting published today. Most board members said they expect U.S. growth to slow in the second quarter and a prolonged recession in Europe.

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