Spanish Economy Expands 0.6% in Q3


The Spanish economy grew by 0.6 percent on quarter in the three months to September 2018, the same pace as in the previous period and in line with market expectations, a preliminary estimate showed. Household consumption and fixed investment grew at a solid pace while net external demand contributed negatively to the GDP growth.

It was the 20th straight quarter of solid growth after a five-year financial crisis that ended in 2013.

According to preliminary estimates, household consumption growth picked up to 0.6 percent in the third quarter from 0.1 percent in the previous period; and government spending expansion also accelerated to 0.8 percent from 0.1 percent. Meanwhile, gross fixed capital formation increased 1 percent in the three months to September after a 3.5 percent rise in the previous period, as investment in tangible fixed assets slowed (1.2 percent vs 4 percent in Q2), in particular construction (0.5 percent vs 2.2 percent), and machinery, equipment, weapon system and biological resources (2.2 percent vs 6.5 percent). Investment in intellectual property products dropped 0.2 percent after a 0.6 percent growth in Q2.

Exports slumped 1.8 percent (vs 0.2 percent in Q2) and imports fell at a softer 1.2 percent (vs 1 percent in Q2).

On the production side, services output growth picked up to 0.9 percent in the third quarter (vs 0.5 percent in Q2) while construction expansion eased to 1.4 percent (vs 1.8 percent in Q2). By contrast, industry output shrank 0.5 percent (vs 0.7 percent in Q2) due to a decline in manufacturing (-0.4 percent vs 1 percent in Q2).

On an annual basis, the GDP rose by 2.5 percent in the third quarter, unchanged from the previous period's three-and-a-half-year low and in line with market consensus.

Spanish Economy Expands 0.6% in Q3


INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/31/2018 8:23:12 AM