On the expenditure side, gross fixed capital formation increased 3.5 percent in the second quarter after a 1.1 percent rise in the previous period, boosted by investment in tangible fixed assets (4 percent vs 1.2 percent in Q1), in particular construction (2.2 percent vs 2.1 percent), machinery, equipment, weapon system and biological resources (6.5 percent vs -0.1 percent). In addition, investment in intellectual property products continued to grow (0.6 percent vs 0.9 percent).
On the other hand, household consumption growth eased to a meager 0.1 percent in the three months to June from a strong 0.9 percent in the previous period; and government spending expansion also slowed to 0.1 percent from 0.8 percent. Net external demand contributed negatively to GDP growth as imports jumped 1 percent (vs 1.7 percent in Q1) and exports rose at a softer 0.2 percent (vs 0.6 percent in Q1).
On the production side, output growth slowed for: service sector activities (0.5 percent vs 0.6 percent); construction (1.8 percent vs 2 percent); and agriculture (0.3 percent vs 0.9 percent). Industry output rebounded 0.7 percent in the second quarter (vs -0.3 percent in Q1), driven by manufacturing (1 percent vs -0.3 percent).
On an annual basis, the economy grew by 2.5 percent in the second quarter, below a preliminary estimate of 2.7 percent and the previous period's revised figure of 2.8 percent.