Mexican factory exports dipped in December in a sign of wavering U.S. appetite for local goods that could undermine an economic recovery, while a drop in consumer imports pointed to weaker domestic demand. Manufactured exports fell 2.17 percent in December compared with November, their steepest month-on-month drop since last April, according to seasonally adjusted data released on Monday by the national statistics agency. Most of Mexico's exports are manufactured goods and nearly 80 percent are sent to its northern neighbor. Stronger exports in the second half of last year had helped the economy climb back from a contraction in the second quarter. Imports of non-oil consumer goods in December fell 0.54 percent compared with November, down for the third month in a row and pointing to weaker consumer demand. Mexico's central bank is expected to hold borrowing costs down to support growth despite a recent jump in consumer prices. Growth slowed in 2013 to around 1.3 percent and the economy is expected to grow about 3.4 percent this year. Mexico posted a $1.524 billion trade surplus in December when adjusted for seasonal swings. In non-seasonally adjusted terms, Mexico posted a trade surplus of $1.658 billion. A separate report from the statistics agency showed Mexico's economy grew 0.39 percent in November from October and contracted 0.04 percent compared to November 2012. The data showed the services sector grew 0.64 percent in November compared to October, the fastest month-on-month expansion in a year. (Reuters)