Private demand dropped 0.5 percent, subtracting 0.3 percentage point from growth after falling 0.2 percent in the previous quarter. Private consumption grew 0.5 percent adding 0.3 percentage point to the expanion. Private non-residential investiment decreased 1.3 percent while residential investment went up 1.9 percent. Inventories subtracted 0.5 percentage point from growth as companies reduced stocks that had expanded over the previous two quarters.
Government spending edged up 0.3 percent while public investment shrank 0.3 percent bringing the contribution from public demand to 0. External demand contributed 0.1 percentage point to growth as exports rose 2.6 percent and imports went up 1.7 percent.
On an annualized basis, the economy contracted 0.8 percent, compared to a downwardly revised 0.7 percent fall in the second quarter and market expectations of a 0.2 percent drop.