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Spain Q2 GDP growth below forecasts

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Christian Fernsby ▼ | July 31, 2019
Spain trade
European economies   Spain trade

Spain’s economy expanded 0.5 percent on quarter in the three months to June of 2019, easing from a 0.7 percent advance in the previous period and below market expectations of a 0.6 percent increase, a flash estimate showed.

Household consumption and government expending slowed while fixed investment contracted and net trade contributed positively to growth.

According to preliminary estimates, household consumption rose 0.3 percent, slowing from a 0.4 percent in the prior quarter and government expenditure edged up 0.2 percent, after expanding 0.4 percent.

In addition, fixed investment contracted 0.2 percent, down from a 1.4 percent rise, mainly due to investment in tangible fixed assets (-0.3 percent vs 1.9 percent), of which machinery, equipment, weapon system and biological resources (-2.5 percent vs 4.3 percent).

On the other hand, investment in intellectual property products rebounded (0.5 percent vs -1.1 percent).

Both exports (1.8 percent vs a flat reading) and imports (1 percent vs -0.3 percent) rebounded.

On the production side, the industrial activity increased 0.3 percent in the three months to June, slowing from a 1.1 percent gain in Q1.

Also, construction output rose 1.3 percent, below a 1.5 percent advance and the services output went up 0.4 percent, after a 0.8 percent growth.

Meantime, the primary sector shrank 0.5 percent, less than a 2 percent contraction in Q2.

On an annual basis, the GDP is expected to advance 2.3 percent in the second quarter of 2019, less than a 2.4 percent growth in the prior quarter and in line with market consensus.


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