Year-on-year, the manufacturing sector expanded by 6.6 percent, following a 11.5 percent growth in the previous three months, driven by the electronics and precision enginering clusters. The services producing industries advanced 1.5 percent, compared to a 1 percent growth in the December quarter, largely due to the wholesale and retail trade and transportation and storage sectors.
In contrast, the construction sector contracted by 1.1 percent, extending the 2.8 percent decrease in the fourth quarter, due to a sharper decline in private sector construction activities.
On a quarter-on-quarter seasonally-adjusted annualized basis, the economy contracted by 1.9 percent, following a 12.3 percent expansion in the December quarter and in line with market expectations. It was the strongest contraction since the third quarter of 2012, mainly due to a decrease in manufacturing (-6.6 percent from 39.8 percent in Q4) and services (-2.2 percent from 8.4 percent) while construction continued to rise (5.4 percent from 0.8 percent).