UPDATE 2-Mexico May retail sales rise, pushing recovery

* Mexico retail sales up 0.7 pct in May from April

* Consumers could play bigger role in recovery
(Adds quote from consumer and background)

MEXICO CITY, July 21 (BestGrowthStock) – Mexican retail sales
posted their biggest increase in three months during May in a
sign consumers could play a bigger role in the country’s
recovery from recession.

Retail sales rose 0.7 percent in May from April after a 1.1
percent fall, month on month, during April, the national
statistics agency said on Wednesday.

Mexico’s consumers have largely been on the sidelines of
Mexico’s rebound from a deep recession because of persistently
high unemployment.

But many economists expect them to open their wallets later
this year, which would partially compensate for a cooling in
manufacturing output. Factories that export goods like cars and
televisions have so far driven Mexico’s rebound from last
year’s 6.5 percent decline in gross domestic product.

Eventually, the country’s economic recovery is seen pushing
the central bank to raise interest rates, although ongoing
weakness will probably keep rates on hold into next year.

At a big box retailer in Mexico City, construction worker
Andres Mayo said he has gotten steady work in recent months and
was shopping for a washing machine.

“We’ve been able to save a little,” Mayo said.

Retail sales rose 5.0 percent in May compared to the same
month a year earlier. Analysts surveyed by Reuters had expected
sales to rise 4.10 percent year-on-year.

Wholesale sales, however, fell 4.1 percent in May from

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(Reporting by Jason Lange, Robert Campbell and Caroline
Stauffer; Editing by Andrew Hay)

UPDATE 2-Mexico May retail sales rise, pushing recovery