On the production side, manufacturing gained steam, expanding 3.3 percent after a 2.7 percent growth in the previous quarter. Also, utilities rebounded sharply, advancing 4.1 percent following a 1.7 percent drop in the first quarter. Meantime, primary activity moderated (+1.5 percent vs +4.1 percent) and services expanded at a slightly softer pace of 3.1 percent (vs +3.2 percent in Q1). In contrast, construction fell into contraction (-0.8 percent vs +0.2 percent).
On the expenditure side, exports expanded at a faster pace (+5.2 percent vs +1.6 percent), while imports advanced less (+2.4 percent vs +4.2 percent), adding to overall growth. In contrast, gross fixed formation contracted 1.1 percent after expanding 3.7 percent in the previous quarter, with construction slipping 0.7 percent (vs +1.8 percent in Q1) and facilities dropping 3.9 percent (vs +7.3 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).
On a quarterly basis, the economy expanded 0.7 percent quarter-on-quarter in the three months to June 2018 after a 1 percent growth in the previous period and matching market expectations.