The Philippines economy expanded 5.5 percent year-on-year in the second quarter of 2019, slowing from a 5.6 percent growth in the previous quarter and below market consensus of 5.9 percent. This was the weakest growth rate since the first quarter 2015, as both private consumption and government spending eased, while fixed investment shrank.
In the three months to June, government expenditure went up 6.9 percent, slower than a 7.4 percent expansion in the first quarter. Also, household consumption expanded 5.6 percent year-on-year, slower than a 6.1 percent increase in the first quarter of 2019.
8/8/2019 8:55:24 AM
In addition, fixed capital formation shrank 4.8 percent, following a 6.4 percent growth mainly due to a fall in durable equipment (-13.0 percent from 6.1 percent). In addition, output slowed in construction (2.6 percent from 6.4 percent); and breeding stocks & orchard development (3.6 percent from 3.8 percent). Meanwhile, intellectual property products rose faster (28.7 percent from 14.0 percent).
Regarding net trade, exports increased by 4.4 percent (vs 5.7 percent in Q1), of which sales of goods (4.6 percent) and services (3.8 percent); while imports showed no growth (vs 8.6 percent in Q1), as purchases of goods fell (-0.2 percent) while that of services increased (1.5 percent).
On the production side, the industry sector grew 3.7 percent, slowing from a 4.8 percent gain in the preceding quarter, with manufacturing output advancing at a softer pace (4.0 percent from 4.9 percent in Q1) while output declined in construction (-0.6 percent from 5.4 percent). Meanwhile, output expanded faster for electricity, gas & water supply (7.5 percent from 3.1 percent); and mining & quarrying (15.0 percent from 4.7 percent). Meantime, agriculture, hunting, forestry & fishing expanded 0.6 percent, after increasing by 0.7 percent in the previous period.
Meanwhile, the services sector advanced 7.1 percent, accelerating from a 6.8 percent growth in the previous period. Output increased faster in trade & repair of motor vehicles, motorcycles, personal & household goods (8.5 percent from 7.3 percent); real estate (4.0 percent from 3.7 percent); and other services (7.8 percent from 5.3 percent). By contrast, growth slowed for public administration & defense, compulsory social security (8.0 percent from 9.7 percent); financial intermediation (9.2 percent from 10.2 percent); and transport, storage & communication (5.5 percent from 7.6 percent).
On a quarter-on-quarter seasonally adjusted basis, the GDP advanced 1.4 percent, following a downwardly revised 0.6 percent expansion in the previous quarter.