Spain slid deeper into recession in the second quarter as a tough new round of austerity to head off the budget crisis that threatens the euro took effect both on overall demand and the price consumers have to pay for goods.

The first official numbers on gross domestic product showed the economy shrank 0.4 percent from the previous quarter after contracting 0.3 percent in the first three months of the year. The economy was 1.0 percent smaller than a year earlier.