GDP shrank by 0.5% in the third quarter of 2008, a greater amount than expected and indicative of the serious deterioration of the economy over the past three months.
Paul Dales, an economist at Capital Economics, told PrintWeek: "It is surprising how deep the fall has cut so soon and it does not bode well as this is only the start of the recession.
"The fall was driven by a decline in the service sector as restaurants and hotels were affected by slowing consumer demand."
However, he said that there was a "glimmer of hope" in the manufacturing sector as the lower pound made exports more attractive.
"Despite this there is a declining demand which will lead to a fall in output," he added.
UK economy in reverse, but weak pound offers hope
The UK economy has shrunk for the first time in 16 years, bringing to the fore the prospect of recession.
