Mexico factory exports fall in May

Mexico's factory-made exports dropped in May, data showed on Monday, while consumer imports, excluding oil, rebounded after a slump.

Manufactured exports fell nearly 2.7 percent in May from April in seasonally adjusted terms, national statistics agency INEGI said.

Mexico exports mostly manufactured goods like TVs and cars to the United States, and many shipments are parts used in American factories.

Exports have been weak despite a sharp drop in the peso. In May, the Mexico government dialed back its economic outlook for growth this year, pointing to slack U.S. industrial output.

Mexico's central bank may soon raise interest rates to support a battered peso despite economic weakness. Non-oil consumer imports rose 1 percent in May from April, bouncing back after two down months.

Domestic consumption has helped buoy the Mexican economy, while exports and oil production have faltered. Mexico posted a US$1.031 billion trade deficit in May when adjusted for seasonal swings.