The Bank of Spain said that growth in the country, the euro zone fourth-largest economy, faltered in the third quarter as domestic demand contracted further in the related period.

Gross domestic product was flat in the third quarter from the previous of 0.2% a quarter earlier, but over annual basis figures reflected 0.7% expansion, according to the monthly economic bulletin released by the bank.

The Bank also said that domestic demand dropped 0.8% in the third quarter due to lower construction and government spending, and despite the slight improvement seen in household demand and private-sector spending. External demand advanced 0.8%, supported by better exports and tourism.