Spain Q1 GDP up 1.1 pct from Q4; up 4.1 pct yr-on-yr

May 23, 2007 - Spain's GDP grew 1.1 pct in the first quarter from the fourth and was up 4.1 pct from a year earlier, the National Statistics Institute (INE) said.

The figures are slightly above the preliminary figures of 1.0 pct and 4.0 pct and higher than the fourth quarter, when GDP expanded at an annual rate of 4.0 pct.

In a statement, INE said domestic demand contributed 4.8 percentage points to GDP growth in the first quarter, slightly lower than the 4.9 pct registered in the fourth, while the negative contribution from the external sector narrowed to 0.7 pct in the first quarter from a negative 0.9 pct in the fourth.

Consumer spending in homes reduced its contribution to growth to 3.5 pct from 3.7 pct 'in line with the wage growth, employment and consumer confidence,' INE said, adding that spending in services was higher than spending in goods.

Investment in construction slipped to 5.6 pct from 5.7 pct, due to a fall in residential and non-residential construction, though this was counter-balanced slightly by 'strong' growth in infrastructure work.

Employment grew at an annual rate of 3.0 pct, down slightly on last quarter, implying net job creation of 555,000 full-time posts.