On a quarterly basis, household spending increased 0.7 percent, slowing from a 1 percent gain in the previous quarter while gross fixed capital formation advanced at a faster 1.3 percent, following a 0.3 percent rise in the first quarter. Investment in equipment and goods went up 2.2 percent (0.9 percent in Q1) and construction increased 0.9 percent (-0.2 percent in Q1) while intellectual property edged down 0.1 percent (0.4 percent in Q1).
Exports jumped 4.3 percent, recovering from a 0.4 percent decline in the previous quarter. It is the biggest gain since the third quarter of 1997 when shipments rose 5.9 percent. Imports also went up at a faster 2.7 percent, following a 0.4 gain percent in the previous period.
In contrast, public spending shrank 1.6 percent, after a 0.7 percent growth in Q1. It is the first decline since a 0.25 percent fall in the last quarter of 2014 and the biggest since a 1.7 percent fall in the first three months of 2012.
On a yearly basis, the economy expanded 3.2 percent, down from 3.4 percent in the first quarter but matching preliminary estimates.
In July, the Economy Minister raised its GDP growth forecast for 2016 to 2.9 percent from an earlier 2.7 percent. Spain’s economy expanded 3.2 percent in 2015, one of the fastest growth rates in the European Union. The upward revision came amid political instability after inconclusive election results in December 2015 and June this year as no party had secured a majority.