Spain's economy expanded 0.6 percent on quarter in the three months to September 2018, unrevised from the preliminary estimate and the same pace as in the previous period. Household consumption and fixed investment increased firmly, while net trade contributed negatively to the GDP growth.
Household consumption surged 0.8 percent in the third quarter after being unchanged in the previous period; and government spending expansion accelerated to 0.8 percent from 0.2 percent. Meanwhile, fixed investment growth slowed sharply to 0.8 percent from 3 percent in the second quarter, as investment in tangible fixed assets eased (0.9 percent vs 3.4 percent in Q2), in particular construction (1 percent vs 1.7 percent), and machinery, equipment, weapon system and biological resources (0.8 percent vs 5.8 percent). Investment in intellectual property products advanced 0.4 percent in the third quarter, the same pace as in the previous three-month period.
Exports slumped 0.9 percent (vs 0.3 percent in Q2) and imports fell at a softer 0.2 percent (vs 0.7 percent in Q2).
On the production side, services output growth picked up to 0.8 percent in the third quarter (vs 0.6 percent in Q2) while construction expansion was unchanged at 1.6 percent. By contrast, industry output shrank 0.2 percent (vs 0.3 percent in Q2) due to a decline in manufacturing (-0.4 percent vs 0.6 percent in Q2); and agriculture activity contracted 3.4 percent (vs 0.5 percent in Q2).
On an annual basis the economy grew by 2.4 percent in the three months to September, below a flash estimate of 2.5 percent, and down from 2.5 percent in the second quarter. This was the weakest growth rate since the last quarter of 2014.
12/28/2018 8:28:55 AM