Spanish GDP fell by 0.3 percent in the third quarter of the year, the Spanish National Institute of Statistics (INE) reported on Thursday.

The figures imply a 0.1 percent decrease in comparison with the second quarter of 2012. In annual terms, Spanish GDP decreased by 1.6 percent while it is the fifth quarter of contraction in a row.

The fall in growth was attributed to slowing domestic demand as a result of low consumption and investment in fixed capital.

The INE highlighted increased consumption in households, although salaries decreased by 5.5 percent. Consumption decreased by 2.1 percent in the second quarter and fell by 2 percent in the third one.

The third quarter fall is more moderate, INE said, adding "this could have been influenced by anticipated purchases due to the sales tax rise implemented in September."

Public administration spending declined 3.9 percent as a result of "intermediate consumption and remuneration of employees."

Foreign demand positively contributed 2.4 points to Spanish GDP, caused by "acceleration in exports and a more moderate decrease in imports."

Goods and services exports increased by 4.3 percent in comparison with the 2.9 percent of the previous quarter. Imports went from a 5.1 percent fall in the second quarter to a 3.5 percent decrease in the third one.

Data published by the INE on Thursday is more positive than those provided by the Bank of Spain that announced on October 23 that Spanish GDP would see a 0.4 percent contraction in the third quarter.