(Adds breakdown of growth by sectors, context)
LIMA, Nov 15 (Reuters) - Peru’s economy grew 4.13 percent in September as a drop in construction weighed on the mining-powered recovery, official data showed on Tuesday.
The expansion in September over a year earlier was stronger than the 3.8 percent forecast in a Reuters poll. However, it fell short of the 5.5 percent expansion in August.
The economy expanded 4.2 percent in the first nine months of the year from the same period in 2015 as copper production from new mining projects surged, state statistics agency INEI said.
However, growth has been checked by falling domestic demand weakened by slumping private investment. In addition, policies to keep a lid on the budget deficit have limited government spending.
In September, construction fell 3.81 percent while manufacturing grew 2.65 percent year-on-year. Mining activity rose 16.62 percent on a 35.9 percent increase in copper output.
On a seasonally adjusted basis, the economy grew 0.1 percent in September from August, INEI said.
The government has forecast 4 percent growth in 2016 compared with 3.4 percent last year and 2.4 percent in 2014.
Peru is on track to rise to become the world’s second biggest copper producer this year, thanks in part to new output from MMG Ltd’s Las Bambas mine. (Reporting by Teresa Cespedes; Writing by Caroline Stauffer; Editing by Chizu Nomiyama and W Simon)