May well 26 (Reuters) – Mexico’s economy grew for a sixth straight quarter in the 1st quarter, information from Latin America’s second-biggest economy showed on Friday, with development in line with industry expectations.

Gross domestic solution (GDP) grew by 1. % in the period of the earlier 3 months, the statistics agency INEGI mentioned, matching the forecasts of economists in a Reuters poll.

The figure, on the other hand, was slightly beneath preliminary estimates released by INEGI a month ago, when the statistics agency mentioned GDP most likely rose 1.1% in the period on a sequential basis.

Economists have currently referred to as preliminary 1st-quarter information “strong,” even though they noted a slowdown in the U.S. economy and tight monetary policy is most likely to dampen Mexico’s overall performance in the coming quarters.

“General, these numbers confirm a decent start off to the year,” Pantheon Macroeconomics chief economist for Latin America Andres Abadia mentioned of Friday’s numbers. “But successive information confirm a gradual deterioration in current months.”

More indicators published by INEGI show that financial activity in the nation decreased by .three% in March compared to the earlier month.

Abadia mentioned it was “very good news” that weakening development momentum and falling inflation would make it a lot easier for the central bank to adopt a dovish tone shortly immediately after pausing a almost two-year cycle of interest price hikes earlier this month.

Quarterly GDP development, according to INEGI, was driven by a 1.five% jump in the tertiary or service sector and a .six% enhance in secondary activities, which incorporate manufacturing.

Major activities such as agriculture, forestry, fishing and mining, on the other hand, decreased by two.eight%.

On an annual basis, the agency adds, the economy grew by three.7 % in the 1st 3 months of 2023 compared to a year earlier. That was slightly beneath the three.9% development anticipated by the industry and projected according to final month’s preliminary information.

Reporting by Gabriel Araujo edited by Steven Grattan, Jason Neely and Conor Humphries

Our Requirements: Thomson Reuters Trust Principles.

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