(Adds expectations, details on components, graphic)
MEXICO CITY, July 11 (Reuters) - Mexican industrial production edged higher in May on solid factory output, but the growth was weaker than expected as a dip in construction cast some doubt on the strength of a recovery in Latin America's No. 2 economy.
May industrial activity rose 0.1 percent compared with April, the national statistics agency said on Friday. The figure was below expectations for a 0.3 percent increase and slower than the downwardly revised 0.5 percent expansion in April.
The finance ministry in May cut its annual growth forecast for 2014 to 2.7 percent from 3.9 percent after a weaker than expected start to the year.
Factory output, a component of industrial production, rose 0.4 percent in May compared with the prior month. Mexico exports mostly manufactured goods and sends nearly 80 percent of its exports to the United States.
The component measuring the construction industry, which contracted sharply last year, slipped 0.1 percent compared with April, falling for the first time since January.
Utilities shrank 1.2 percent compared to the prior month while mining dipped 0.2 percent.
Industrial output rose 1.6 percent in May from a year earlier, compared with expectations for a 1.8 percent increase. A drop in April was revised downward to 0.8 percent. (Reporting by Michael O'Boyle; Editing by Phil Berlowitz)