Domestic demand in Spain picks up

Spain's economy remained in recession at the end of last year as construction and government spending fell while domestic demand and exports improved, final data showed yesterday.

Spain, testing markets' faith yesterday with a 15-year syndicated bond sale, has now contracted for seven straight quarters, and the data still point to a weak if improving economy in 2010.

The economy shrank by 0.1 per cent in the fourth quarter from a quarter earlier, in line with an estimate made last week and as forecast by economists. It compared with a 0.3 per cent fall in the third quarter. The data showed a slowdown in the pace of fall in household consumption to -3.3 per cent, from -6.6 per cent the previous quarter.

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