Moderate growth was mainly explained by manufacturing, which expanded 4.5 percent after a 10.6 percent expansion in the previous quarter, with growth mainly nudged by output expansions in the electronics, biomedical manufacturing and transport engineering clusters. Meantime, services grew at a 2.9 percent pace for the second straight quarter, mainly supported by growth in finance & insurance, business services and wholesale & retail trade sectors. In contrast, construction extended its contraction, shrinking 3.1 percent after falling 4.2 percent in Q2, as weakness in public construction activities persisted.
On a quarter-on-quarter seasonally-adjusted annualized basis, GDP expanded 4.7 percent quarter-on-quarter in the third quarter of 2018, well above the 1.2 percent final growth for the previous quarter but missing expectations of a 4.9 percent increase. It was the fastest expansion in four quarters, mainly nudged by further growth in manufacturing (7.6 percent vs 2.9 percent in Q2) and services (6.3 percent vs 0.7 percent), and a rebound in construction (1.7 percent vs -14.5 percent).