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

Gross domestic solution (GDP) enhanced 1.% in the period from the prior 3 months, statistics agency INEGI mentioned, matching forecasts from economists in a Reuters poll.

The figure, even so, came in slightly under preliminary estimates disclosed by INEGI a month ago, when the statistics agency mentioned GDP had most likely enhanced 1.1% in the period on a sequential basis.

Economists had currently dubbed the preliminary very first quarter information as “strong,” despite the fact that noted a slowdown in the U.S. economy and tight monetary policy would most likely soften Mexico’s efficiency in the coming quarters.

“All round, these numbers confirm a decent get started to the year,” Pantheon Macroeconomics’ chief economist for Latin America, Andres Abadia, mentioned about Friday’s figures. “But sequential information is confirming a gradual deterioration in current months.”

Extra indicators released by INEGI showed that financial activity in the nation shrank .three% in March from the prior month.

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

The quarterly GDP development, according to INEGI, was driven by a 1.five% jump in the tertiary or service sector and a .six% improve in secondary activities, which comprise manufacturing.

Principal activities such as farming, forestry, fishing and mining, nonetheless, shrunk by two.eight%.

In annual terms, the agency added, the economy expanded three.7% in the very first 3 months of 2023 compared to a year earlier. That was slightly under the three.9% development anticipated by the industry and projected by final month’s preliminary information.

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

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