Gross fixed capital formation jumped 2.5 percent after rising by 1 percent in Q4 2016; and household consumption went up 0.5 percent, faster than a 0.4 percent gain in the previous period. Also, changes in inventories contributed 0.1 percentage points to GDP growth. Meanwhile, general government expenditure shrank 0.2 percent after showing no growth in the previous quarter and net external demand contributed negatively, as exports fell 0.2 percent (1.5 percent in Q4) while imports rose at a faster 0.9 percent (0.2 percent in Q4).
On the production side, market production of goods and services increased by 0.8 percent (0.9 percent in Q4). Production of goods increased by 0.5 percent (0.3 percent in Q4) and service-producing industries grew by 0.9 percent (1.2 percent in Q4). Employment measured as the total number of hours worked increased by 0.6 percent, and the number of persons employed increased by 1.2 percent.
Year-on-year, the GDP advanced 2.2 percent, following a downwardly revised 2.1 percent growth but also below market consensus of 3 percent.