MEXICO CITY (AP) — Mexico's economy grew 2.8 percent in the second quarter after a sluggish start to the year but the expansion still trailed year-ago levels, the government said.
Gross domestic product grew 2.8 percent from the second quarter of 2006, and was up 1.29 percent from the preceding quarter in non-annualized, seasonally adjusted terms, the Economy Department said Thursday.
The results ''suggest that economic activity is picking up more slowly and with more difficulty than originally expected,'' said Ixe bank economist Luis Flores. ''Nevertheless, the services sector is showing a growth trend capable of compensating for that situation.''
Industrial production rose 0.8 percent in the April-June period, with manufacturing up 0.5 percent and construction up 1.2 percent from the year-ago quarter. Services rose 3.7 percent, led by a 7.1 percent expansion in communications and transportation.
The Economy Department estimates Mexico's economy will grow about 3.3 percent this year, down from 4.8 percent growth in 2006. The Bank of Mexico expects growth between 3 percent and 3.5 percent.