The UK economy contracted by 0.4% between July and September, meaning that the country is still in recession, according to figures released by the Office for National Statistics.

This is the first time that UK gross domestic product has contracted for six successive quarters since quarterly figures were introduced in 1955.

The figures revealed that no component of the economy grew in the third quarter, with total production falling 0.7% and the services sector dipping 0.2%.

"These figures make sobering reading, both for the Government and for British businesses. Continued intervention - including help for businesses to access finance, and incentives to promote investment - is still needed. Above all else, business confidence must be nurtured, to ensure that recovery is not further delayed," said Dr Adam Marshall of the British Chambers of Commerce.

It had been expected that the economy would grow by 0.2% this quarter and the worse-than-expected figures may force the Bank of England to extend its policy of quantitative easing.