Italian GDP Growth Beats Expectations in Q2


The Italian economy advanced 0.3 percent on quarter in the three months to June, following an upwardly revised 0.4 percent growth in the previous quarter and beating first estimate of 0.2 percent. Household consumption and increases in inventories were the main drivers of expansion while negative trade flows held the economy back, final figures showed.

It was the second straight quarter of expansion, as consumer spending advanced 0.3 percent, following a 0.1 percent contraction in the previous quarter. As a result, final consumption expenditure grew 0.2 percent (-0.1 percent in Q1) and final domestic demand increased by 0.2 percent (0.1 percent in Q1). Also, changes in inventories contributed positively to the growth, expanding by 0.4 percent (+0.5 percent in Q1). By contrast, government spending showed no growth while fixed investment shrank 0.1 percent (+0.2 percent in Q1). Meanwhile, net external demand continued to drag the expansion down, contracting by 0.2 percent (-0.3 percent in Q1), as imports expanded 2.2 percent while exports increased at a slower 1.2 percent.
On the production side, the services sector grew 0.3 percent; industrial activities showed no growth, as industry excluding construction expanded 0.2 percent, while construction shrank 0.7 percent; and agriculture contracted 1.1 percent. 
Year-on-year, the economy advanced 0.7 percent, from an upwardly revised 0.2 percent in Q1. It was the strongest growth since the third quarter of 2011, as final consumption expenditure increased by 0.5 percent and gross fixed capital formation by 0.3 percent.

Italian GDP Growth Beats Expectations in Q2


Istat | joana.ferreira@tradingeconomics.com
9/1/2015 12:37:58 PM