By Patrick Rucker
MEXICO CITY, Sept 28 (Reuters) - Mexico's economic output shrank 6.87 percent in July over the year-ago period but grew from the previous month, suggesting the country is emerging from a deep recession.
Economic activity was up 2.45 percent in July compared with June, statistics agency Inegi said in a statement.
Economic output remains far below highs reached in May 2008 but may recover to those levels by the mid-2010, said one analyst.
'If the (economic output) index swells by 1 percent each month, it needs nine months to return to that level,' said Pedro Tuesta, economist with 4CAST in Washington.
The economy actually returned to positive territory in June when month-over-month growth touched 0.41 percent, the agency said in a revision to previous data. That snapped a three-month streak of contraction.
Mexico has been hit hard by the longest U.S. recession since the Great Depression, which has pushed unemployment to a 26-year high and shriveled consumer demand.
Mexican exports jumped in August to their highest since November 2008, spurred in part by a U.S. program that encouraged drivers to trade in their old cars.
Monday's data offers another early clue as to whether the Mexican economy will fulfill predictions for a third-quarter rebound foreseen by the government and central bank.
A recovery for Latin America's second-largest economy is expected to track the United States, which absorbs more than 80 percent of Mexico's exports.
On Monday, Mexican stocks jumped by the most in nearly two months as merger and acquisition activity boosted confidence in a global economic recovery, while the peso strengthened.
(Reporting by Patrick Rucker and Luis Rojas Mena; Editing by Dan Grebler) Keywords: MEXICO ECONOMY/ (patrick.rucker@reuters.com; +52 55 5282 7153; Reuters Messaging: patrick.rucker.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
MEXICO CITY, Sept 28 (Reuters) - Mexico's economic output shrank 6.87 percent in July over the year-ago period but grew from the previous month, suggesting the country is emerging from a deep recession.
Economic activity was up 2.45 percent in July compared with June, statistics agency Inegi said in a statement.
Economic output remains far below highs reached in May 2008 but may recover to those levels by the mid-2010, said one analyst.
'If the (economic output) index swells by 1 percent each month, it needs nine months to return to that level,' said Pedro Tuesta, economist with 4CAST in Washington.
The economy actually returned to positive territory in June when month-over-month growth touched 0.41 percent, the agency said in a revision to previous data. That snapped a three-month streak of contraction.
Mexico has been hit hard by the longest U.S. recession since the Great Depression, which has pushed unemployment to a 26-year high and shriveled consumer demand.
Mexican exports jumped in August to their highest since November 2008, spurred in part by a U.S. program that encouraged drivers to trade in their old cars.
Monday's data offers another early clue as to whether the Mexican economy will fulfill predictions for a third-quarter rebound foreseen by the government and central bank.
A recovery for Latin America's second-largest economy is expected to track the United States, which absorbs more than 80 percent of Mexico's exports.
On Monday, Mexican stocks jumped by the most in nearly two months as merger and acquisition activity boosted confidence in a global economic recovery, while the peso strengthened.
(Reporting by Patrick Rucker and Luis Rojas Mena; Editing by Dan Grebler) Keywords: MEXICO ECONOMY/ (patrick.rucker@reuters.com; +52 55 5282 7153; Reuters Messaging: patrick.rucker.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.