Hopes for an end to the 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 fall of 0.4 per cent leaves the UK in the grip of the longest period of continuous decline since records began in 1955 and is contrary to expert forecasts of recovery.

Experts had predicted the end of the recession, forecasting a 0.2 per cent growth which they believed would be led by a recovery in the UK’s dominant services industry, despite shakier conditions among manufacturers and a difficult high street climate.

But the figures show the country’s Gross Domestic Product, which measures the total amount of goods and services produced by a country, has now shrunk by 5.9 per cent.

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 declined by 0.2 per cent over the quarter.

The contraction was mirrored in today’s car production figures, which show manufacturing fell again last month, but the decline was the smallest for a year.

The number of cars made in the UK in October 2009 totalled 119,616 – a 16.1 per cent dip on the September 2008 figure, the Society of Motor Manufacturers and Traders said.

However, there was good news for the property market, with the number of approved mortgages bouncing back. A total of 42,088 loans were approved, according to the British Bankers’ Association.