Industrial activity up 3.3 pct in Mexico in August

 Industrial activity in Mexico increased by 3.3 percent in August compared to the previous month, rising for the third month in a row thanks to an uptick in construction, the National Institute of Statistics and Geography (Inegi) said on Monday.

However, Mexico's industrial output, closely tied to its counterpart in the United States, decreased 9 percent in August year-on-year, and accumulated a 13.1 percent drop in the first eight months of the year.

Construction activity increased in August by 11.2 percent compared to the previous month, according to the Inegi's seasonally adjusted figures.

Electric power generation, and water and gas supplies via pipeline rose 5.7 percent in August, while mining and manufacturing increased 0.8 percent each.

In a separate report, Monex Financial Group described the increase in industrial activity in August as "surprising," saying it could buoy economic expectations for the third quarter, but not for the entire year.

"We believe that, from now on, the secondary (industrial) sector will present monthly variations close to 1 percent, so that the accumulated 13.1 percent drop so far in 2020 will be tough to reverse," Monex said.

Since June 1, Mexico has gradually reactivated some sectors of the economy that had been idled since March to contain the spread of the novel coronavirus (COVID-19).