Britain saw a record sell-off of stockpiled goods during the first quarter, boosting hopes that the end of the recession is in sight. However, weakness in household spending, investment and trade underlined the threat of a limp recovery.

The Office for National Statistics confirmed on Friday the economy contracted by 1.9 per cent in the first quarter, in its first revision of gross domestic product data. But the detailed figures also revealed that inventories of parts and finished goods fell by £6bn – equivalent to 2 per cent of GDP – the largest drop in stocks since records began in 1955. The fall means stockpiles built up during the previous two years have been almost halved.