Mexican economy falters in May as construction dips

MEXICO CITY, July 23 (Reuters) - Mexico's economy contracted in May from April, official data showed on Thursday, fueling caution about the country's situation as the primary and secondary sectors posted declines.

Economic activity fell 0.3% compared with the same month a year earlier, and compared with expectations for a 0.4% decrease.

Latin America's second-largest economy slipped after posting in April its largest monthly economic expansion in more than five years with a revised increase of 1.4%.

The month-on-month decline reflected decreases in the secondary sector, particularly construction with a 3.7% decline, and the primary sector.

On an annual basis, the economy grew 1.1%, compared with forecast growth of 1%.