The Mexican economy declined in May for the second consecutive month, with a large negative contribution from net inventories more than offsetting an increase from the construction component of industrial production, according to The Conference Board’s leading economic index for Mexico. However, the index’s six-month growth rate remains higher than in the second half of last year and its components still suggest that the economy will continue to expand in the near term.

The index declined 0.6 percent in May to a reading of 125.5 (2004=100) from April’s revised reading of 126.3, The Conference Board reported today. Only one of the six components that comprise the index increased in May: The industrial production construction component.

The index rose 1.9 percent in the six-month period ending in May. 

The coincident economic index for Mexico edged up 0.1 percent in May and stands at 123.2 (2004=100).