The positive contribution to GDP came from private consumption (4.2 percentage points) and government spending (0.4 percentage points). In contrast, fixed investment, changes in inventories and net trade subtracted 0.4 percentage points each from the growth.
Year-on-year, private consumption grew 6.7 percent (5.4 percent in Q2); and public spending increased 4.1 percent (3.2 percent in Q2). By contrast, gross fixed capital formation contracted for the first time since the second quarter of 2016 by 1.7 percent, following a 7.2 percent growth in the previous period. Within fixed investment, expenditure on machinery, equipment and intellectual property products decreased 6 percent, as against the increase of 4.7 percent in Q2. Exports of goods went up 5.5 percent, the same pace as in Q2, and imports jumped 6.1 percent, also the same as in Q2. Exports of services advanced 3.7 percent (2.6 percent in Q2) and imports increased at a slower 1.5 percent (3.7 percent in Q2).
On a quarterly basis, the GDP advanced 0.5 percent, following an upwardly revised 1.1 percent expansion in the previous period. Private consumption grew 2.4 percent (2.1 percent in Q2) and government spending went up 1.5 percent (1.1 percent in Q2). Meanwhile, exports of goods rose 0.7 percent (-0.9 percent in Q2) and imports increased 1.9 percent (-0.3 percent in Q2). Exports of services jumped 2.8 percent (-1 percent in Q2) while imports shrank 2.3 percent (1.8 percent in Q2).
The robust quarterly performance prompted Hong Kong's statistics office to revise its full-year GDP forecast from a range of 3-4 percent to 3.7 percent in 2017.