(Corrects non-seasonally adjusted balance to reflect deficit, not surplus, 8th paragraph)
MEXICO CITY, Aug 26 (Reuters) - Mexico's trade deficit narrowed in July as factory exports remained steady but consumer imports sagged amid faltering economic growth in Latin America's No. 2 economy.
Consumer goods imports dipped 1.69 percent compared with June, suggesting weaker domestic demand, according to seasonally data released on Monday by the national statistics agency.
Mexico's economy contracted in the second quarter from the first, the first negative quarter-on-quarter growth in four years. This prompted the government last week to revise down its growth estimate for the year to 1.8 percent for 3.1 percent.
Manufactured goods, including automotive parts and motor vehicles, make up a large part of Mexico's exports.
In July, factory exports edged up 0.03 percent, though automotive exports fell 0.83 percent compared with June and adjusted for seasonal swings. Mexico sends nearly 80 percent of its exports to the United States.
Manufactured exports, excluding vehicles, rose 0.43 percent compared with the previous month.
Mexico posted a $366 million trade deficit in July when adjusted for seasonal swings, compared with a revised $417.4 million trade deficit posted in June.
In non-seasonally adjusted terms, Mexico posted a trade deficit of $1.44 billion last month. (Reporting by Alexandra Alper; Editing by Simon Gardner and W Simon)