Mexican growth slowed more than expected in the fourth quarter as industry contracted by the most in over two years despite steady services expansion, data showed on Tuesday.
The economy MXGDPQ=ECI grew by about 0.5 percent from the prior quarter, below the 0.8 percent rate in the third quarter and expectations of 0.6 percent from analysts in a Reuters poll.
The industrial sector, which has been hit by sinking oil prices and production at state oil giant Pemex [PEMX.UL], fell 0.4 percent compared to the third quarter, its biggest drop since the second quarter of 2013.
Services, which buoyed growth last year, grew by 0.9 percent, slightly below the 1 percent pace of expansion in the third quarter.
Latin America’s No. 2 economy suffered last year from uneven U.S. demand for its exports and recent weakness in U.S. factory output could further drag on Mexico.