The manufacturing sector contracted 3.8 percent, after shrinking 0.4 percent in the first three months of 2019, as a decline in output of electronics and precision engineering clusters, more than offset output expansions in the rest of the manufacturing clusters. Additionally, construction output growth slowed to 2.2 percent from 2.7 percent in the prior period.
On the other hand, the services sector expanded 1.2 percent, the same pace as in the first quarter, boosted by the finance & insurance and information & communications sectors.
On a quarterly basis, the gross domestic product shrank 3.4 percent, after growing 3.8 percent in the previous period and missing market expectations of a 0.1 percent expansion. It was the sharpest contraction since the third quarter of 2012, as the services sector (-1.5 percent from 4.4 percent in Q1) and construction output (-7.6 percent from 13.3 percent) shrank. Meantime, the manufacturing sector contracted 6 percent, less than a 6.4 percent decline in the prior period. On an annual basis, the economy advanced 0.1 percent, the weakest growth rate since the second quarter of 2009, slowing from a downwardly revised 1.1 percent expansion in the first quarter of the year and well below market forecasts of a 1.1 percent rise.