Services expanded 0.2 percent in the second quarter of the year, recovering from a 0.3 percent contraction in the previous quarter and matching an earlier estimate. Output rebounded in transport & storage (1.2 percent vs -0.2 percent); food & accomodation services (1.5 percent vs -0.6 percent); corporate services (0.4 percent vs -2.0 percent); and cultural and sports activities (2.3 percent vs -2.1 percent). Also, output declined less in wholesale trade (-0.6 percent vs -2.3 percent); information & communication (-1.7 percent vs -5.3 percent); and finance & insurance (-0.8 percent vs -0.9 percent). Additionally, retail trade advanced 1.7 percent, faster than a 0.9 percent growth in the first three months of 2019. Meanwhile, output dropped further in professional, scientific and technical services (-3.3 percent vs 1.0 percent); and continued to fall in education (-0.2 percent, the same as Q1). In addition, growth slowed in business services (1.5 percent vs 2.4 percent) and real estate stalled after expanding 0.4 percent in Q1.
The industrial sector shrank 0.2 percent, following a 0.5 percent contraction in the prior period. Mining output dropped 1.1 percent, following a 1.2 percent decline, while manufacturing grew 1.1 percent, after stalling in the first three months of the year. Additionally, output rose 1.6 percent in utilities, rebounding from a 0.4 percent decrease. On the other hand, construction output fell 2.9 percent, after stalling in Q1.
The primary sector contracted 3.4 percent, after a 1.6 percent growth in the first quarter of the year, in line with a preliminary estimate.
Year-on-year, the economy shrank 0.8 percent in the second quarter of 2019, following a 1.2 percent growth in the previous period and also matching market expectations. It was the first yearly economic contraction since the last quarter of 2019, mainly due to a decline in industrial activity.