Net external demand contributed positively to the GDP growth as exports rose 0.7 percent (vs 3.2 percent in Q1) while imports slumped 2.1 percent (vs 4.7 percent in Q1). In addition, government spending edged up 0.1 percent, the same pace as in the previous quarter.
By contrast, household expenditure shrank 0.3 percent (vs 0.2 percent in Q1), due to lower consumption of non durable goods and services (-0.7 percent vs 0.6 percent). Still, there were increases in consumption of food (0.4 percent vs -0.1 percent) and durable goods (1.2 percent vs -2.2 percent).
Also, fixed investment contracted 2.4 percent (vs 8.4 percent in Q1) due to lower spending on other machinery and equipment including weapon systems (-4.9 percent vs 13.0 percent) and construction (-3.6 percent vs 10.7 percent); while rises were seen in transport equipment spending (5.6 percent vs -0.6 percent) and intellectual property products investment (1.8 percent vs -0.6 percent).
Year-on-year, the economy grew 1.8 percent in the second quarter, also unrevised from the preliminary estimate and matching the expansion recorded in the previous period. Domestic demand was the main driver of growth while net exports contributed negatively to the GDP.