On the production side, manufacturing gained steam, expanding 3.2 percent after a 2.7 percent growth in the previous quarter (and vs preliminary 3.3 percent). Also, utilities rebounded sharply, advancing 3.9 percent following a 1.7 percent drop in the first quarter (and vs prel 4.1 percent). Meantime, primary activity moderated (+1.2 percent vs +4.1 percent and vs prel +1.5 percent) and services expanded at a slightly softer pace of 3.0 percent (vs +3.2 percent in Q1 and vs prel +3.1 percent). In contrast, construction fell into contraction and was revised sharply up (-1.6 percent vs +0.2 percent and prel -0.8 percent).
On the expenditure side, exports expanded at a faster pace (+4.8 percent vs +1.6 percent and vs prel +5.2 percent), while imports advanced less (+2.0 percent vs +4.2 percent and vs prel +2.4 percent), adding to overall growth. In contrast, gross fixed formation contracted 1.3 percent after expanding 3.7 percent in the previous quarter (and vs prel -1.1 percent), with construction slipping 1.5 percent (vs +1.8 percent in Q1 and prel -0.7 percent) and facilities dropping 3.0 percent (vs +7.3 percent and vs prel -3.9 percent). In addition, final consumption grew at a softer clip of 3.3 percent (vs +4.0 percent), with private spending rising 2.8 percent (vs +3.5 percent) and public spending increasing 4.8 percent (vs +5.8 percent), all unchanged from preliminary estimates.
On a quarterly basis, the economy expanded 0.6 percent quarter-on-quarter after a 1 percent expansion in the previous period and below both market expectations and the preliminary print of 0.7 percent.