The UK economy contracted by 2.4% in the first quarter of 2009 - the fastest rate of decline since 1958, according to data released by the Office for National Statistics (ONS).

The data also revealed that economic output fell 4.9% during the first quarter of this year compared to the first quarter of 2008 - the largest year-on-year fall on record.

Despite the poor figures, economists are stressing that the most recent data suggests the UK's economic condition is improving.

"These figures are much worse than expected, but since we are now on the verge on the third quarter it should only provide a temporary knock to confidence," said James Knightley of financial firm ING.