Mexican GDP slowed during Q2 as U.S. economy slackened

An economic slowdown in the U.S. likely reduced the pace of growth and development in Mexico during the second quarter of the year, according to Bloomberg.

The Latin American nation’s growth slackened to roughly half the pace of first quarter, as a slowdown in the U.S., the world’s largest economy, resulted in a decrease in shipments of oil and manufactured goods there from Mexico. Mexico's gross domestic product during the second quarter of the year grew 0.7 percent as compared to the first quarter, when it developed 1.3 percent.

"We're seeing a moderation in the manufacturing cycle from previous quarters," chief Mexico economist Gabriel Lozano with JPMorgan Chase & Co. told the news source. "It's not something we should be too worried about, and it's in line with a decrease in dynamism in the United States."

A Bloomberg survey indicated annual development will slow to 2.9 percent during the third quarter before it climbs to 3.1 percent during the final quarter of the year.

The Wall Street Journal reports Governor Agustin Carstens with the Bank of Mexico said this week that the Mexican peso will continue appreciating. Since late May, the monetary unit has advanced more than 9 percent against the U.S. dollar.