By Patrick Rucker
Mexico's agriculture sector expanded in July to drive economic activity surprisingly higher while upticks in the services and industrial sector were also bright spots for Latin America's second-largest economy.
Economic activity rose 0.88 percent in July from the previous month, government statistics institute INEGI said on Wednesday, more than double analysts' median forecast in a Reuters poll for a rise of 0.33 percent.
In June, economic activity contracted 0.19 percent, a revision from the 0.21 percent contraction originally reported.
The pickup in economic activity, as gauged by the INEGI's IGAE indicator, ran counter to a common view that Mexico's economy is losing momentum from its 5.4 percent growth last year.
Global credit worries and uncertain demand from the United States pushed economists to recently trim their view on Mexican
economic growth this year to 3.81 percent, according to the median forecast in a central bank poll.
But Wednesday's surprisingly bright activity data could reassure central bank policy-makers that the economy can continue to grow without cutting interest rates.
Bloomberg - Mexico’s peso tumbled from a one-week high as concern about Europe’s debt crisis blunted a report that showed Latin America’s second-biggest economy expanded more than forecast in July. The peso weakened 1.4 percent to 13.5563 per U.S. dollar.
Maquila Portal - A CNC Machining Training Center has been inugurated in Mexicali to train workers for the region's growing aerospace industry. The project is the work of the state government, CONACYT and the private sector.
Maquila Portal - Three maquiladora companies with around 2,000 employees have been under technical stoppage in the last few months, while nine companies have resorted to stoppages to avoid layoffs during downturns.
Sentido Comun - Ten Mexican companies, including ABC Airlines and Grupo Mexico's transport division, are planning initial public offerings when economic conditions improve, said Luis Tellez, president and CEO of the Bolsa Mexicana de Valores.
Sentido Comun - Mexico's economic activity, as measured by the Global Indicator of Economic Activity or IGAE, rose 0.9 percent in seasonally adjusted terms in July against June, a rebound from the setback of 0.2 percent in June.
Los Angeles Times - An FBI/DEA confidential informant helped smuggle firearms from the ATF's Fast and Furious gun-trafficking surveillance operation to drug cartels in Mexico, according to evidence compiled by congressional investigators.
NPR - Acapulco teachers are out on strike —- not over wages, working conditions or pensions, but because of crime. Teachers say they're being extorted, kidnapped and intimidated by local gangs and they're refusing to return to their classrooms.
Bloomberg - Petroleos Mexicanos’ revival of a 10-billion peso ($746 million) local bond sale it scrapped two weeks ago is making the state oil company the biggest issuer in the country as it finances a $270 billion investment program.