(Adds detail on non-consumer imports)
MEXICO CITY, June 27 (Reuters) - Mexican factory exports and non-oil consumer imports rose in May, signaling a rebound in Latin America’s No. 2 economy is gaining traction.
Non-oil factory exports rose 1.3 percent in May from April, boosted by a 3.18 percent jump in auto exports, the national statistics agency said on Friday.
Most of Mexico’s exports are manufactured goods and nearly 80 percent of them are sent to the United States. Mexico’s manufacturing sector was hurt by the impact of bad winter weather in the United States in early 2014.
Data last month showed Mexico’s economy grew just 0.3 percent in the first quarter compared to the prior three months, prompting the government to slash its annual growth forecast for the year to 2.7 percent from 3.9 percent.
Non-oil consumer imports rose 1.62 percent in May compared to April in a sign of recovering domestic demand.
Data earlier this month showed Mexican retail sales rose in April, growing for the second month in a row after a recent slump.
Friday’s report showed imports of semi-finished factory inputs and capital goods like machinery rose strongly, which is likely to signal future growth in manufacturing production.
Mexico’s factory sector sentiment edged up in May, rising for a second month in a row, on improving new orders and employment despite a dip in output.
Mexico’s central bank cut interest rates to a record low of 3 percent in a surprise move earlier this month, citing still-weak growth and tame inflation.
Policymakers emphasized the cut was a one-off.
Mexico posted a $461 million trade deficit in May when adjusted for seasonal swings. In non-seasonally adjusted terms, Mexico posted a trade surplus of $132 million . (Reporting by Alexandra Alper; Editing by Paul Simao)