Tuesday November 14 2017
Portuguese GDP Grows 0.5% in Q3
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Portuguese economy advanced 0.5 percent on quarter in the three months to September of 2017 after expanding 0.3 percent in the previous period and missing market expectations of 0.6 percent, the preliminary estimates showed.

The figure marked a third year of consecutive growth, as the contribution from net external demand shifted to positive from negative, with exports rising faster than imports. Meanwhile, the contribution from domestic demand decreased slightly, mainly due to lower investment while private consumption recovered.

Year-on-year, the GDP expanded 2.5 percent, below 3 percent in the previous period and missing market expectations of 2.8 percent. The positive contribution of domestic demand increased, due to rising private consumption while investment slowed. The contribution from net external demand was negative amid a sharper deceleration in exports and a rise in imports.

The government revised up its 2017 GDP growth estimates to 2.6 percent from 1.8 percent. For 2018, the economy is expected to advance at a slower 2.2 percent. This compares with the European Commission projections of 2.6 percent and 2.1 percent, respectively.




Monday November 13 2017
Portuguese Inflation Rate Unchanged at 4-Month High
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portuguese consumer price inflation came in at 1.4 percent year-on-year in October 2017, unchanged from the previous month's four-month high and in line with market expectations. An increase in cost of food, transport, accommodation, and miscellaneous goods and services offset a drop in prices of leisure activities, clothing, and furnishings and household equipment.

Year-on-year, prices rose for: Food and non-alcoholic beverages (1.3 percent from 1.1 percent in September); transport (2.6 percent, the same as in September); miscellaneous goods and services (1.4 percent from 1.3 percent); restaurants and hotels (6 percent from 4.5 percent); health (0.8 percent from 0.7 percent); and housing and utilities (1.2 percent from 1.3 percent). Meanwhile, downward pressure came from: Recreation and culture (-0.2 percent from 1.5 percent in September); clothing and footwear (-3.7 percent from -3.4 percent); and furnishings, household equipment and routine maintenance of the house (-0.4 percent from -0.5 percent).

Annual core inflation rate, which excludes energy and unprocessed food products components, stood at 1.3 percent, unchanged from the previous two months.

On a monthly basis, consumer prices rose 0.3 percent after a 0.9 percent jump in September. Biggest upward pressure came from clothing and footwear (2.3 percent from 20.2 percent in September) while prices of food fell (-0.1 percent from 0.1 percent). 

The harmonized consumer price index increased by 1.9 percent year-on-year and by 0.5 percent from the previous month.




Thursday October 12 2017
Portugal Inflation Rate at 4-Month High of 1.4% in September
INE |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Portugal increased 1.4 percent year-on-year in September, accelerating from 1.1 percent in the previous month. It is the highest inflation since May, mainly boosted by cost of food; transport; miscellaneous goods & services and housing & utilities. Core inflation which excludes food and energy rose 1.3 percent, the same pace as in August.

Year-on-year, prices advanced faster for: food & non-alcoholic beverages (1.1 percent vs 0.4 percent in August); transport (2.6 percent vs 1.7 percent); miscellaneous goods & services (1.3 percent vs 1.1 percent) and housing & utilities (1.3 percent vs 0.7 percent). Additional upward pressure came from: restaurants & hotels (4.5 percent vs 3.9 percent); health (0.7 percent vs 0.6 percent) and alcoholic beverages & tobacco (2.6 percent vs 2.3 percent).

On the other hand, cost slowed for recreation and culture (1.5 percent vs 2.8 percent) and communication (3.1 percent vs 3.8 percent) while declined for household equipment (-0.5 percent vs -0.6 percent) and clothing & footwear (-3.4 percent vs -1.9 percent).

On a monthly basis, consumer prices inched up 0.9 percent, after being flat in the previous month.

The harmonized consumer price index increased 1.6 percent year-on-year, above 1.3 percent in August. Compared to the previous month, the harmonized index rose 1 percent from 0.2 percent in August.


Tuesday September 12 2017
Portugal Inflation Rate Rises to 1.1%
INE | Joana Taborda | joana.taborda@tradingeconomics.com

Consumer prices in Portugal increased 1.1 percent year-on-year in August of 2017, above 0.9 percent in July and reaching the highest in three months. A rise in transport prices was the main driver of the increase in the CPI. Core inflation which excludes food and energy increased to 1.3 percent from 1 percent in July.

Year-on-year, prices rose faster for food and nonalcoholic beverages (0.37 percent compared to 0.31 percent); transport (1.73 percent compared to 1.09 percent); housing and utilities (0.65 percent compared to 0.51 percent); miscellaneous goods and services (1.12 percent compared to 0.86 percent) and restaurants and hotels (3.91 percent compared to 3.68 percent). In addition, prices fell less for clothing and footwear (-1.7 percent compared to -1.9 percent).

On a monthyl basis, consumer prices were flat, following a 0.7 percent frop in July. 

The harmonized consumer price index increased 1.3 percent year-on-year and 0.2 percent from the previous month.


Thursday August 31 2017
Portuguese Q2 GDP Growth Revised Up to 0.3%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Portuguese economy expanded 0.3 percent on quarter in the three months to June 2017, above the preliminary estimate of 0.2 percent and following an increase of 1 percent in the previous period. The reading marked a third year of consecutive growth, but the weakest pace since Q2 2016, mainly due to a negative contribution from net external demand.

Domestic demand grew 0.8 from the previous period (0.6 percent in Q1), with changes in inventories contributing positively to the growth and fixed investment rising 1.1 percent (2.8 percent in Q1). Investment in machinery and equipment went up at a slower pace (0.4 percent from 3.4 percent in Q1), while spending on construction contracted sharply (-3.3 percent from 5.1 percent in Q1). Meanwhile, investment in transport equipment jumped 31.9 percent (-0.8 percent in Q1). By contrast, household consumption contracted 0.3 percent, following a 0.9 percent growth in Q1; and government spending fell 0.1 percent, after showing no growth in the previous period.

Net external demand contributed negatively, as exports of goods and services fell 0.2 percent (2.9 percent in Q1), while imports rose 0.7 percent (1.9 percent in Q1). 

Year-on-year, the economy grew 2.9 percent, above the preliminary estimate of 2.8 percent and following an increase of 2.8 percent in the previous period. It was the strongest growth rate since the last quarter of 2000. Domestic demand grew 2.7 percent (2.6 percent in Q1), as households' spending expanded by 2.2 percent (2.3 percent in Q1) and fixed investment increased by 10.3 percent (9.6 percent in Q1) while public expenditure contracted 0.9 percent (-0.4 percent in Q1). Net external demand also contributed positively, as exports rose 8.2 percent (9.5 percent in Q1) and imports advanced at a slower 7.5 percent (8.8 percent in Q1).


Monday August 14 2017
Portuguese Economy Grows 0.2% in Q2
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Portuguese economy advanced 0.2 percent on quarter in the three months to June of 2017 after growing 1 percent in the previous period and missing market expectations of 0.5 percent, the preliminary estimate showed.

Compared with the previous period, GDP grew 0.2 percent, easing from an increase of 1 percent in the first quarter and missing market consensus of 0.5 percent. The reading marked a third year of consecutive growth, but the weakest pace of expansion since Q2 2016, mainly due to a negative contribution from net external demand. Meanwhile, domestic demand increased further boosted by investment, as both changes in inventories and gross fixed capital formation contributed positively, although the latter was lower than the observed in the previous quarter.

Year-on-year, GDP growth stood at 2.8 percent, unchanged from the previous period's nine-year high but below market expectations of 3.1 percent. The positive contribution of domestic demand remained strong, more intense than in the previous quarter, due to the acceleration of investment. Net external demand registered a slight negative contribution, reflecting the more pronounced deceleration in exports relatively to the deceleration in imports.

The government expects the economy to grow 1.8 percent in 2017.


Thursday August 10 2017
Portugal Inflation Rate Steady at 0.9% in July
INE |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Portuguese consumer prices increased 0.9 percent year-on-year in July of 2017, the same pace as in the previous month. It remains the lowest inflation rate since December last year. Cost rose faster for food and miscellaneous goods and services; recovered for housing and utilities while slowed for transport.

Year-on-year, prices rose faster for: food & non-alcoholic beverages (0.3 percent vs 0.2 percent in June); miscellaneous goods & services (0.9 vs 0.8 percent); recreation & culture (2.5 percent vs 2.1 percent);   restaurants & hotels (3.7 percent vs 3.5 percent); health (0.6 percent vs 0.5 percent); alcoholic beverages & tobacco (2.3 percent vs 2.2 percent); communication (3.7 percent vs 3.6 percent) and education (0.9 percent vs 0.8 percent). In addition, cost recovered for housing & utilities (0.5 percent vs -0.2 percent). 

On the other hand, prices slowed for transport (1.1 percent vs 1.5 percent) and declined for clothing & footwear (-2.5 percent vs -1.6 percent) and furnishings & household equipment (-0.8 percent vs -0.6 percent). 

Annual core inflation rate, hich excludes energy and unprocessed food products components, edged down 1 percent from 1.1 percent in June.

On a monthly basis, consumer prices fell 0.7 percent compared to a 0.4 percent fall in June.

The harmonized consumer price index increased by 1 percent year-on-year and fell by 0.6 percent from the previous month.


Wednesday July 12 2017
Portuguese Inflation Rate Slows To 6-Month Low In June
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Portuguese consumer prices increased by 0.9 percent year-on-year in June 2017, easing from a 1.5 percent gain in the previous month. It was the lowest inflation rate since December last year, as cost of food and miscellaneous goods and services rose at a slower pace, while housing prices fell.

Year-on-year, prices rose at a slower pace for: Food and non-alcoholic beverages (0.2 percent from 2.1 percent in May); miscellaneous goods and services (0.8 percent from 1.1 percent); restaurants and hotels (3.5 percent from 4.9 percent); and recreation and culture (2.1 percent from 2.2 percent). Transport prices rose further by 1.5 percent after a 1.1 percent gain in May. Meanwhile, downward pressure came from: Housing and utilities (-0.2 percent from 0.1 percent in May); and clothing and footwear (-1.6 percent from -1.8 percent).

Annual core inflation rate, which excludes energy and unprocessed food products components, edged down to 1.1 percent from 1.2 percent in May.

On a monthly basis, consumer prices fell 0.4 percent, mainly due to lower prices for food and non-alcoholic beverages (-0.7 percent).

The harmonized consumer price index increased by 1 percent year-on-year and fell by 0.5 percent from the previous month.


Monday June 12 2017
Portugal Inflation Rate Down To 1.5% In May
INE | Joana Taborda | joana.taborda@tradingeconomics.com

Consumer prices in Portugal increased 1.5 percent year-on-year in May of 2017, easing from a 2 percent rise in April. Inflation slowed mostly for transport and restaurants and hotels after rising in April due to the Easter holidays.

Year-on-year, prices rose at a slower pace for transport (1.1 percent from 4.6 percent in April); restaurants and hotels (4.9 percent from 5.7 percent); housing and fuels (0 percent from 0.2 percent); health (0.5 percent from 0.7 percent); recreation and culture (2.2 percent from 2.7 percent) and alcoholic beverages and tobacco (3 percent from 3.3 percent).

In contrast, prices rose faster for food and non-alcoholic beverages (2.1 percent from 2 percent); communication (3.3 percent from 3.1 percent) and miscellaneous goods and services (1.1 percent from 0.4 percent). Cost fell less for clothing and footwear (-1.8 percent from -2 percent) and accessories, household equipment and house maintenance (-0.2 percent from -0.5 percent).

Annual core inflation, which excludes energy and unprocessed food products, fell to 1.2 percent from 1.7 percent in the previous month. 

On a monthly basis, consumer prices went down 0.2 percent, following a 1 percent rise in April, mainly due to a 2.4 percent drop in transport cost. 

The harmonized consumer price index increased by 1.7 percent year-on-year and fell by 0.3 percent from the previous month.


Wednesday May 31 2017
Portuguese Q1 GDP Growth Confirmed At 1%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Portuguese economy expanded 1 percent on quarter in the three months to March 2017, following a 0.7 percent growth in the previous period and matching the preliminary estimate. It was the strongest growth rate since the first quarter of 2010, mainly boosted by net external demand while household consumption and fixed investment increased at a slower pace, final figures showed.

It was the twelfth consecutive period of expansion and the strongest in seven years, mainly boosted by net external demand as exports of goods and services jumped 3.1 percent (2.7 percent in Q4 2016), while imports rose at a slower 1.2 percent (4.8 percent in Q4). 

Also, domestic demand grew 0.2 from the previous period (1.6 percent in Q4), as household consumption advanced 0.8 percent (1.1 percent in Q4), and gross fixed capital formation increased 2.1 percent (5.9 percent in Q4). Investment went up at a slower pace for construction (5 percent from 7.6 percent in Q4) and other machinery and equipment (1.1 percent from 4.3 percent), while contracted for transport equipment (-0.7 percent from 8.5 percent in Q4) and intellectual property products (-3.2 percent from 3.3 percent in Q4). Meanwhile, government spending showed no growth (0.1 percent in Q4).

On the production side, output grew mainly for: Construction (4.7 percent from 6.7 percent in Q4); other service activities (1.2 percent from 0.8 percent in Q4); and financial, insurance and real estate activities (0.7 percent from -0.9 percent in Q4). Meanwhile, trade, accommodation and food service activities showed no growth (1.7 percent in Q4), while output contracted for industry (-0.4 percent from 0.8 percent in Q4); and transportation and storage, information and communication (-1.8 percent from 2 percent in Q4).

Year-on-year, the economy advanced 2.8 percent after growing by 2 percent in the previous period. It was the strongest growth rate since the last quarter of 2007, driven by net exernal demand, as exports rose 9.7 percent (6.6 percent in Q4) and imports advanced at a slower 8 percent (7.7 percent in Q4). Domestic demand grew 2.2 percent (2.5 percent in Q4), as households' spending expanded by 2.2 percent (3 percent in Q4) and fixed investment increased by 8.9 percent (5.2 percent in Q4) while public expenditure contracted 0.4 percent (after showing no growth in Q4).