HOPES for an end to recession were dashed today after new figures showed the economy shrank for a record sixth quarter in a row between July and September.

The shock 0.4 per cent third-quarter fall takes the total loss of output since the recession began last year to 5.9 per cent, the Office for National Statistics (ONS) said.

The estimates mean the depth of the current slump is nearing the six per cent decline seen between 1979 and 1981.

The persistent decline of the ailing economy comes despite interest rates at a record low 0.5 per cent since March, economic stimulus moves from the Government and an unprecedented £175bn boost to the money supply through quantitative easing.

Although figures such as Chancellor Alistair Darling and Bank of England governor Mervyn King expect some modest growth by the end of this year, pressure on the economy will intensify in 2010 as stimulus measures such as the temporary VAT cut and the cash-for-bangers scrappage scheme come to an end. Unemployment is also steadily rising towards three million.

Today's figures showed the pressure on hard-hit consumers during the period with output from distribution, hotels and restaurants down by one per cent.

Overall service output, which represents almost three-quarters of the UK economy, was expected to register growth but instead disappointed with a 0.2 per cent decline over the quarter.

The construction sector also remained in the doldrums, falling 1.1 per cent during the period. The beleaguered industry has now contracted by a mammoth 14.7 per cent since the beginning of 2008.

Industrial production output, meanwhile, shrank by 0.7 per cent and is down by 13.7 per cent since the recession began.

Todays figures have been compiled with around 40 per cent of the required data and could be subject to changes in the next two months when more information has been gathered.

The ONS's first estimate for output between April and June was first estimated at minus 0.8 per cent, and subsequently revised upwards to minus 0.6 per cent.

Experts predicted a 0.2 per cent advance for the economy, but today's figures leave the UK in the grip of the longest period of continuous decline since ONS records began in 1955.