Jonathan Loynes of Capital Economics said the broad-based decline in output signified that the economy was likely to be weak for some time.

BBC: Biggest spending drop since 1980

Given the UK's more favourable economic position, "any eventual slowdown here will be less severe than in the US", said Jonathan Loynes at Capital Economics.

BBC: Should UK rates be cut?

"The fourth quarter's bigger-than-expected fall underlined the fact that, while sentiment towards the region has improved, the hard news on the economy remains distinctly weak, " said Jonathan Loynes, chief European economist at Capital Economics.

NPR: Eurozone Recession Deepens As Germany Falters

"Coupled with the recent deterioration in the forward-looking indicators, it is becoming increasingly clear that consensus forecasts of trend growth this year are likely to prove too optimistic, " says Jonathan Loynes, chief UK economist at Capital Economics.

BBC: Slow growth threatens spending

"The fall in the core rate... might be the first real sign that the weakness of households' spending power is starting to bear down on underlying price pressures in the High Street, " said Jonathan Loynes of Capital Economics.

BBC: UK CPI inflation in surprise fall to 4.2% in June