Indeed. Infants can home in on a breast or a bottle from the get-go; babies are crawling by about 6 months, and walking at about 1 year. They are able to grasp and manipulate objects around six months, I believe. All these seem to imply spatial awareness.
Quick googling and I didn't find the article but I have read it. Maybe someone can find the magic keywords.
The crux of the study was that children who don't know the words left and right don't appear to have an innate ability to understand the relative positions of objects related to other objects. Children with the language for left and right can remember relative positioning but children without those words do not.
Where's the citation on this?