Argentine July economic activity up 5.1 pct year/year

Reuters

BUENOS AIRES, Sept 27 (Reuters) - Argentinas economicactivity increased by 5.1 percent in July compared with samemonth last year, the government said on Friday, a hair shy ofmarket expectations.

Analysts polled by Reuters had expected a 5.2 rise in themonthly EMAE economic activity index, which is aclose proxy for gross domestic product.

The INDEC statistic office also said in a statement thatJuly economic activity contracted 1.2 percent compared withJune.

Argentina's gross domestic product (GDP) expanded by 8.3percent in the second quarter compared with the same period in2012, and was up 2.6 percent from the first quarter of thisyear, INDEC said earlier this month.

President Cristina Fernandez has prioritized economic growthahead of October mid-term elections that will determine the makeup of Congress during what will be her final two years inoffice.

She has used extra government spending to temporarily easethe negative effects of currency and capital controls imposedafter she started her second term in 2011.

Argentine GDP is expected to grow 5.1 percent in 2013,triggering billions of dollars in payments on growth-linkedgovernment bonds, as a big grain and oilseed harvest along withthe automobile industry boosts activity.

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