The Office for National Statistics said service sector output fell by 0.1 percent in April after a decline of 0.2 percent in March.

In the three months to April, output fell by 1.2 percent after a decrease of 1.6 percent in the three months to March -- the slowest rate of decline since December.

The economy contracted at its sharpest pace in more than 50 years in the first quarter but recent survey data have suggested a pick-up may be in sight, with some forecasters even predicting that growth resumed in Q2.

The ONS also released data on productivity, which showed output per worker fell by a record 4.2 percent on the year in the first quarter, the biggest drop since the series began in 1960 and compared with a 1.8 percent drop in Q4 2008.

On the quarter, output per worker fell by 2.0 percent in the first three months of this year, the biggest fall since Q3 1979, after a decline of 1.6 percent in Q4.

Separately, the ONS published data on company profitability, showing the net rate of return by private non-financial corporations in the first quarter fell to 12.3 percent from 13.1 percent in Q4 2008, the lowest since Q2 2003.

Profitability in the service sector fell to 13.8 percent from 15.8 percent in Q4, the lowest since Q4 1993, while that in manufacturing crumbled to 6.8 percent from 13.9 percent, the lowest since Q1 1992.