The UK economy exited recession in the fourth quarterly of 2009 but the quarterly growth rate of 0.1 per cent was very weak, Nevertheless, the economy has resumed growth after the longest recession on record.

Real gross domestic product (GDP) increased 0.1 per cent in the fourth quarter of 2009 and the increase in output was due mainly to increases in distribution, hotels and restaurants and government and other services.

The UK Office for National Statistics (ONS) said the recession, which lasted for six consecutive quarters, has cut 6 percent off GDP and the economy shrank 4.8 percent in 2009, the biggest annual drop since records began in 1949, officials said.

Compared with the fourth quarter of 2008, GDP fell 3.2 per cent.

Contributions to growth

Distribution, hotels and restaurants was the largest contributor to the positive growth this quarter. Government and other services and total production also had significant contributions to the increase. This was partially offset by a small decrease in business services and finance. Construction and transport, storage and communication were flat over the quarter.

Index of Production

The production industries increased 0.1 per cent compared with a decrease of 0.9 per cent in the previous quarter.

Manufacturing increased 0.4 per cent. Mining and quarrying increased 1.0 per cent and Electricity, gas and water supply decreased 3.3 per cent. The production industries decreased 6.3 per cent between 2009 Q4 and 2008 Q4 .

Construction

Construction growth was flat compared with an increase of 1.9 per cent in the previous quarter. Construction decreased 4.9 per cent between 2009 Q4 and 2008 Q4 .

Distribution, hotels and restaurants

Distribution, hotels and restaurants increased 0.4 per cent compared with an increase of 0.7 per cent in the previous quarter. Motor trades and retail made the largest contribution to the increase. Distribution, hotels and restaurants decreased 0.5 per cent between 2009 Q4 and 2008 Q4 .

Business services and finance

Business services and finance growth was flat compared with a decrease of 0.8 per cent in the previous quarter. The most significant positive contribution was from real estate. This was offset by a significant negative contribution from banking.

Business services and finance decreased 4.8 per cent between 2009 Q4 and 2008 Q4.

The UK's return to growth follows that of a number of developed economies. Germany, France and Japan all began to grow again in the second quarter of 2009.

The UK's fourth quarter data could yet be revised below the zero mark, by the ONS.