Industrial activity in Mexico increased 0.2 percent in July, supported in good measure by the behavior of construction sector, the National Institute of Statistics and Geography (Inegi) said on Tuesday.

The July figure represented a third straight month of growth, but it was a decrease from the 0.4 percent registered in June, according to data from Inegi.

In July, the construction sector saw an expansion of 1.4 percent, the highest in the past seven months.

The generation, transmission and distribution of electrical power, water and gas supply through pipelines grew 1.2 percent in July, according to Inegi.

The mining industry, on the other hand, shrank 1.1 percent in July and the manufacturing sector saw no change.

In the year-on-year variation, the industrial sector grew 1.3 percent in July for a seven-month growth of 0.4 percent in 2018.

Mexico's industrial production is closely tied to the economic cycles of the United States, its main partner in the North American Free Trade Agreement (NAFTA) which is being renegotiated along with Canada.

In a report to its customers, the Banorte Financial Group said that minor commercial uncertainty and the relatively dynamic performance of the U.S. economy could lead to a gradual rebound in Mexico's industrial production in the coming months.

"We expect a modest rebound in manufacturing in the coming months, although industrial activity could be limited in the face of less momentum from construction," Banorte said.

On Aug. 29, Mexico's Central Bank (Banxico) cut its economic growth projection from a previous range of between 2 and 3 percent, to between 2 and 2.6 percent. In 2017, the economy grew 2 percent.