On the expenditure side, final consumption expenditure grew 0.1 percent, compared to a 1.3 percent expansion in the preceding quarter. Private consumption contracted by 0.2 percent (from +1.4 percent in Q4), as spending on durable and semi-durable decreased. Government spending grew by 1.3 percent (+1.0 percent in Q3). Gross fixed capital formation rose 1.3 percent after registering a 1.0 percent growth in the preceding quarter. Construction investment grew by 6.8 percent (from -2.4 percent in Q4), with an increase in building construction and civil engineering. Intellectual property products investment rose by 0.3 percent (from +0.7 percent), with increases in both R&D and other intellectual property product. In contrast, facilities investment contracted by 7.4 percent (from +0.5 percent), with decreases in machinery investment and transport equipment investment. Exports dropped by 1.1 percent (from +2.1 percent), as sales of goods such as petroleum & coal products and automobiles declined. Imports fell by 3.1 percent (from +3.2 percent), mainly on decreases in machinery and transport equipment.
On the production side, manufacturing sector fell by 0.2 percent (from +0.7 percent), as production of machinery & equipment and automobile products decreased. Electricity, gas & water supply contracted by 1.8 percent (from +0.8 percent). In contrast, construction sector expanded by 4.8 percent (from +0.7 percent), with increases in both building construction and civil engineering. Services sector rose by 0.5 percent (from +0.7 percent), centering around finance & insurance and health & social work. Agriculture, forestry & fishing also also grew by 6.5 percent, following a 2.6 percent decline in the December quarter.
Year-on-year, GDP advanced 2.8 percent in the March quarter 2016, compared to an earlier projection of a 2.7 percent growth.