According to the data revealed by the government, Spanish retail sales dropped 3.9 percent year-on-year in inflation-adjusted terms in October.

The numbers compared with a 3.4% year-on-year decline in Sep 2009, but was still well away from near double digit falls witnessed at the starting of the year.

While talking to reporters, Etefania Ponte from BNP Paribas Fortis said," Against a negative background, this confirms that private consumption touched bottom in the second quarter. With unemployment at around 17 percent it's difficult for private consumption to pick up."

The local consumption in Spain has been hit suspiciously in the recession because of the sharp contraction in credit provisions.

Spain's revival is likely to be slower than that of other major economic systems owing to its long dependence on a bloated construction segment, which is now in deep trouble.

According to The Organization for Economic Cooperation, it is predicted that Spain's GDP would contract by 3.5 percent in 2009 and will shrink 0.25 in the coming year.

Further, talking to the reporters in Madrid, Nicolas Lopez of M&G Valores brokerage said," 'Despite the ups and downs we're going to see in the economy, I think that things are going to go better in 2010, because there is a clear improvement in the rest of the world and we, in general terms, are also getting better."