Mexico’s industrial output contracted in September more than analysts expected after exports stagnated and a pair of hurricanes devastated both of the nation’s coasts.
Production fell 1.6 percent from a year ago, more than forecast by all 17 analysts surveyed by Bloomberg, who predicted a 0.4 percent decline. Output decreased 1.2 percent from the previous month. Manufacturing production rose 1.2 percent from a year earlier, less than the 1.3 percent forecast in the survey.
Mexico’s economic growth is slowing to a third of the pace of last year’s 3.9 percent and to its lowest since a 2009 recession. Policy makers have cut the benchmark interest rate three times this year to a record 3.5 percent. The central bank lowered its 2013 growth estimate to between 0.9 percent and 1.4 percent on Nov. 6 from 2 percent to 3 percent, saying downside risks to growth remain elevated.
Exports grew 2.25 percent in the year through September compared with an increase of 6.15 percent during the same period last year. Economic headwinds increased in September when two hurricanes battered Mexico’s Pacific and Gulf coasts, killing more than 150 people and destroying crops, roads and bridges.