A general view of the skyline from the Makati City Hall in Manila, Philippines. Photo: Reuters/Nicky Loh

The Philippines GDP grew by 6.4% for the first quarter of the year, well below median economist estimates of 6.8% and 6.7% surveyed by Reuters and Bloomberg, reports Business World. The disappointing numbers contrast even more starkly with the government prediction of 7% growth for the quarter.

Philippines stocks fell 0.88% on Thursday after the release of the data.

Nomura wrote in a research note that “the main source of disappointment for us was private consumption which eased to 5.7% from 6.2% despite resilience of remittances and stronger agriculture output… Consistent with slower investment spending, construction activity also eased along with the services sector, led by transport, storage and communications and real estate.”

Industrial sector growth slowed to two-year low of 6.1%, while construction growth slowed to 8.2% from double-digit growth over the last five quarters