UPDATE 1-Mexico June gross fixed investment -2.08 pct m/m

* Investment in construction, machinery falls in June

* Imported machinery and equipment declines 4.5 pct vs May
(Recasts with detail from report)

MEXICO CITY, Sept 10 (BestGrowthStock) – Mexican firms scaled back
their investments in imported machinery in June and the
construction sector remained anemic, highlighting the fragility
of the country’s economic recovery.

Gross fixed investment, a measure of capital spending,
fell 2.08 percent in June from May (MXGFIN=ECI: ), the national
statistics agency said on Friday.

The imported machinery and equipment index fell 4.5 percent
while construction edged up only 0.2 percent from a year ago.
Purchases of domestically made equipment and machinery rose 18
percent.

On an annual basis the measure of spending on machinery,
equipment and new construction was up 0.6 percent from June
2009 (MXGFI=ECI: ), falling short of estimates of a 1.1 percent
rise.

Mexico’s close links to the U.S. economy have left it
vulnerable to a slowdown across the border. The government
expects growth to slow in 2011 to 3.8 percent from a forecast
4.5 percent expansion this year.
(Reporting by Robert Campbell; Editing by James Dalgleish)

UPDATE 1-Mexico June gross fixed investment -2.08 pct m/m