DJ Peru Feb Mining/Hydrocarbons Output Expanded 14.65% - Govt

LIMA, Apr 01, 2008 (Dow Jones Commodities News Select via Comtex) -- -- Production in Peru's mining and hydrocarbons sector rose 14.65% in February, the biggest gain since December, 2005, the government said Tuesday.

Government statistics agency, INEI, also said that activity in the farming sector increased 2.73%, while fishing sector activity declined 2.03% in the second month of the year.

The country's economy expanded by a higher-than-expected 10% in January, and the Central Reserve Bank of Peru forecasts that the economy expanded 9.5% in February.

The INEI said that the mining subsector was boosted by rising output of copper, zinc and gold.

It also said that domestic cement consumption rose 22.88% in February, pointing to strong overall gains in the construction sector. Electricity output rose 14.53% in the month.

The central bank forecasts that construction grew 25.6% in February, while manufacturing expanded 12.8%.

The INEI statistics agency releases the figures from growth in mining and other sectors before later releasing the overall gross domestic product number.

The INEI will release the full February GDP number on April 15.

The farming sector makes up 7.6% of the overall gross domestic product weighting, while the mining-and-hydrocarbons sector makes up 4.7%.

Economists say that Peru's economy is expected to expand by some 7.0% in 2008 after growing by close to 9.0% last year.

-Robert Kozak, Dow Jones Newswires; 511-221-7050; peru@dowjones.com

(END) Dow Jones Newswires

04-01-08 1311ET

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