The Spanish economy fell again in the first quarter and job losses intensified, according to the Bank of Spain's Economic Bulletin for March. Private consumption and indicators that measure the confidence of consumers and retailers in January and February fell to 2010 levels.

The watchdog does not give specific figures but specifies that this data would "confirm the extension of the contraction dynamics" of the gross domestic product in the first quarter of the year.

The Spanish GDP registered a drop of 0.3% in the fourth quarter of 2011. Two consecutive quarters of recession would constitute entry into technical recession.

The Bank of Spain reported a decrease of 3.9% in February in private car registrations year-on-year, and also a drop in retail sales of 4.7% in January.

The report highlights the continued sluggish demand amid falling investment in capital assets and the decline in the number of social security members in the construction sector.

To this they add the slowdown in growth of exports, which, according to the Customs data, was 5.4% lower than the increase which was recorded during the fourth quarter of 2011.

The tourism sector is maintaining a "positive tone" with the increase in the number of foreigners' overnight stays and the total expenditure of these tourists.

In the labour market, job losses have intensified in the first months of the year with the number of social security members falling again in February, while the annual increase rate in the number of unemployed accelerated.

The Bank of Spain also indicated the deviation of public deficit in 2011 with respect to the target set by the previous government and highlights the new non-financial expenditure ceiling set for 2012 by the new government and the deficit target of 5.3% of GDP expected this year.

In this sense, they value the "different support mechanisms" to the autonomous regions and municipalities in order to facilitate the refinancing of prior debts or payments to commercial creditors.

Concerning the eurozone, ABC News reported that the economic bulletin noted "signs of stabilisation" in economic activity in the first months of the year, although they warned that they are "still at low levels," since industrial production rose in January, but the orders fell.

In January retail sales rose slightly in the eurozone, but the number of car registrations that month fell.

The Bank of Spain Governor, Miguel Angel Fernandez Ordonez, reminded member states of the eurozone they should now "identify" in their plans for reform and stability, the specific measures they intend to take to promote growth and make it compatible with fiscal consolidation.