The economy shrunk by 0.3% in April, more than the expected 0.1% contraction.
The Chancellor Rachel Reeves said the figures were ‘clearly disappointing’ but insisted her spending review would help deliver growth.
Both services and manufacturing output fell with one of the biggest falls being with with legal firms and estate agents after a sharp increase in house sales in March as home buyers and sellers raced to complete their transactions before the stamp duty thresholds increased.
Output in the car industry fell but the construction industry fared slightly better, growing by 0.9 per cent.
US exports fell by a record amount after front-running exports ahead of tariffs in the first quarter
Reeves told Times Radio that April was a challenging month” and advises caution when looking at the most recent GDP figures which show the economy shrank by 0.3pc in April.
