Bank of Spain sees economic growing 0.6% to 0.7% in third quarter

MADRID, Sept 16 (Reuters) - Spain's economy is set to grow at a rate of between 0.6% and 0.7% in the third quarter, a much faster rate than the other large euro zone economies and similar to the 0.7% in the previous three-month period, the Bank of Spain said on Tuesday.

The central bank said that consumer spending may slow down somewhat in the third quarter though it would still be robust, supported by improved household confidence in July and by improved financial conditions.

In its quarterly outlook update, the central bank raised the full-year growth to 2.6% from a 2.4% growth forcast three months ago, thanks largely to a better-than-expected performance in the second quarter.

The Spanish government raised its own economic growth forecast to 2.7% from 2.6%, also on Tuesday.

The country's economy has steadily expanded in the aftermath of the pandemic, outpacing the sluggish growth of eurozone peers.

The central bank maintained its growth forecast for 2026 and 2027 unchanged at 1.8% and 1.7%, respectively, buoyed by private and public consumer spending.