On the expenditure side, final consumption expenditure grew 0.1 percent, compared to a 1.3 percent expansion in the preceding quarter. Private consumption contracted by 0.3 percent (from +1.4 percent in Q4), as spending on durable and semi-durable decreased. Government spending grew by 1.3 percent (+1.0 percent in Q3). Gross fixed capital formation rose 1.2 percent after registering a 0.9 percent contraction in the preceding quarter. Construction investment grew by 5.9 percent (from -2.4 percent in Q4), with an increase in building construction and civil engineering. Intellectual property products investment rose by 0.1 percent (from +0.7 percent), centering around software investment. In contrast, facilities investment contracted by 5.9 percent (from -2.4 percent), with a decrease in machinery investment and transport equipment investment. Exports dropped by 1.7 percent (from +2.1 percent), as exports of goods such as petroleum & coal products and automobiles declined. Imports fell by 3.5 percent (from +3.2 percent), mainly on a decrease in machinery & equipment and transport equipment.
On the production side, manufacturing sector fell by 0.2 percent (from +0.7 percent), as production of machinery & equipment and automobile products decreased. Electricity, gas & water supply contracted by 0.8 percent (from +0.8 percent), centering around electricity. In contrast, construction sector expanded by 3.2 percent (from +0.7 percent), with an increase in residential building construction. Services sector rose by 0.5 percent (from +0.7 percent), led by growth in finance & insurance and real estate & leasing, offsetting a decline in wholesale & retail trade, restaurants & hotels and cultural & other services. Agriculture, forestry & fishing also grew by 5.9 percent (from -2.6 percent), mainly due to an increase in livestock industry.
Year-on-year, GDP advanced 2.7 percent following a 3.1 percent expansion in the previous period. It is the weakest growth since the third quarter of 2015.