(Recasts with factory exports, adds details on imports)
MEXICO CITY, Sept 26 (Reuters) - Mexican factory exports slipped in August in a sign that an economic recovery Latin America's No. 2 economy may lose some steam, but stronger imports pointed to improving domestic demand.
Factory exports fell 1.1 percent in August from July in seasonally adjusted terms, the national statistics agency said on Friday, after rising sharply in the previous month.
Most of Mexico's exports are manufactured goods and nearly 80 percent of the country's total exports are sent to the United States.
Non-oil consumer imports rose by 2.2 percent in August compared with July, pointing to stronger demand from shoppers after weakness early this year.
Mexico's economy picked up in the second quarter after a slow start to the year, and analysts project the economy will grow around 2.5 percent this year after expanding only 1.4 percent in 2013.
Mexico posted a $596 million trade deficit <MXTBLS=ECI > in August when adjusted for seasonal swings, while in non-seasonally adjusted terms, the trade deficit was $1.123 billion. (Reporting by Michael O'Boyle Editing by W Simon)