Household consumption advanced 0.9 percent in the second quarter of 2018, after increasing 0.5 percnet in the first quarter of the year and government spending grew 0.3 percent (vs 0.2 percent in Q1). Changes in inventories added 0.6 percentage points to the growth. Meanwhile, net trade contributed negatively to the GDP growth, as imports rose 0.8 percent (vs 0.9 percent in Q1) and exports rose at a softer 0.4 percent (vs a flat reading in Q1). Additionally, fixed investment shrank 0.5 percent, after a 2.5 percent gain in the prior period.
On the production side, market production of goods and services increased by 0.9 percent. Production of goods went up by 0.2 percent (vs 1.1 percent in Q1) and service-producing industries advanced by 1.3 percent (vs 0.8 percent). Employment measured as the total number of hours worked rose by 0.8 percent seasonally adjusted and the total number of persons employed grew by 0.2 percent.
Year-on-year, the economy advanced 2.5 percent, down from a 3.3 percent growth in the preliminary estimate, following a downwardly revised 2.8 percent expansion in the previous period and missing market consensus of 3.3 percent.