Portuguese economic growth stalled in the third quarter of 2015 after five straight periods of expansion as domestic demand shrank by 0.5 percent (against +1.2 percent in Q2), due to a 2.9 percent contraction of gross fixed capital formation (against +1.4 percent) and a 0.6 percent fall in government expenditure (against +0.8 percent), while household spending grew by 0.5 percent (against +1 percent). Meanwhile, net external demand expanded, as imports of goods and services decreased by 3 percent (against +4.7 percent in Q2) while exports fell at a slower 2.1 percent (against +3.2 percent).
Total employment shrank 0.5 percent, following a 0.9 percent growth in the precedent quarter.
Year-on-year, the economy advanced 1.4 percent, easing from a 1.6 percent growth in the previous quarter. Final consumption expenditure grew 1.9 percent, after increasing 2.6 percent in the previous quarter, as households spending expanded by 2.4 percent (+3.2 percent in Q2) and public expenditure increased by only 0.4 percent (+0.6 percent in Q2). Fixed investment grew 1.9 percent (+5.3 percent in Q2), contributing to a 1.7 percent expansion of gross capital formation (+8.5 percent in Q2). Exports increased by 3.9 percent (+7.3 percent in Q2) and imports went up by 4.9 percent (+12 percent in Q2). As a result, net exernal demand registered a significant negative contribution to the economy's growth.