Housing investment fell 0.2 percent, marking the first decline in the sector since 2002.

Spain's economy grew at an annualized rate of 2.7 per cent in the first quarter of 2008, down eight-tenths of a percent from the previous quarter, due to the sharp slowdown in consumer demand and investment, the National Statistics Institute has said.

Investment in both capital equipment and construction fell during the first three months of the year.

Housing investment fell 0.2 percent, marking the first decline in the sector since 2002.

The construction industry continued to feel the effects of slumping housing demand, posting growth of only 1.4 percent, or half the level in the previous quarter

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