Mexico City: A powerful 6.7 magnitude earthquake shook Mexico on Saturday, killing at least one person, knocking out lights in parts of the capital and sending people rushing into the streets.

There were no immediate reports of damage or injuries in Mexico City but emergency services said one person was killed when a house collapsed in Iguala, a small city between the capital and the tourist resort of Acapulco.

"I was dreadfully afraid, I thought it was never going to end," said Laura Gonzalez, who was drinking in a bar in the capital when the quake struck.

A severe earthquake in 1985 killed thousands of people and wrecked parts of Mexico City, and many residents live with the fear of a repeat.

Shoppers at a popular department store in the fashionable Condesa district of the capital rushed out to the street, some of them crying and shouting, and traffic lights were out at several intersections, causing traffic jams.

"I felt it very strongly ... but it was nothing like the one in the 80s. Since then, nothing has been comparable," said a building manager in central Mexico City, who declined to give his name.

The epicenter of the quake was in the southwestern state of Guerrero and was 40 miles deep, the U.S. Geological Survey reported. It was felt in other states including Michoacan, Puebla and Hidalgo, local media reported.

Power was knocked out in many districts of the capital but Mexico City mayor Marcelo Ebrard said water services, the subway and the airport were working normally.

"There are no reports of severe damage or injuries at the moment," an emergency services spokesperson said in Mexico City, although fire crews and emergency workers were checking on the ground.

Milenio newspaper reported that one building had been evacuated southwest of Mexico City's historic center.

A source from phone operator Telcel said services went out briefly in some sections of the city as the mobile network was overloaded with people trying to call family and friends.

State oil monopoly Pemex, which has few installations on the Pacific coast, said there were no reports of damage.

(Agencies)