UPDATE: Spain 2Q Flash GDP -1% On Quarter, -4.1% On Yr

MADRID --The rate of decline of Spain's economic output eased in the second quarter from the first, although the annual fall was the largest since 1970, data showed Friday.

According to preliminary data from Spain's National Statistics Institute, or INE, Spanish gross domestic product fell by 1% in the second quarter from the first quarter, and was down 4.1% against the second quarter of last year.

"The contraction in GDP continues to be a result of a fall in domestic demand, partially compensated for by a positive contribution from net exports," the INE said in a statement.

The second-quarter fall was Spain's fourth consecutive quarter of sequential contraction since more difficult financing conditions caused the collapse of the country's once-buoyant housing market and high-flying economy.

Although the quarterly fall eased in the second quarter, Spain's economy isn't showing as strong signs of recovery as some euro-zone countries. Thursday, Germany, France and Portugal all said GDP rose 0.3% in April to June on the quarter.

"Overall the data is somewhat disappointing but consistent with the view that Spain will underperform the euro zone," BNP Paribas analyst Dominic Bryant said in a research note. He added it was a "small downward surprise," contrary to the upward surprises in Germany and France.

The INE will give more details about Spain's second-quarter GDP Aug. 27.