The Office for National Statistics this week revised the fall in UK GDP in the first quarter from 1.9% to 2.4% but monthly figures on output in the services and production sectors – which account for 93% of GDP – indicate that the pace of contraction slowed during the quarter and the economy may have stabilised in April.

The chart shows official quarterly GDP, rebased to the peak level in the first quarter of 2008, together with a monthly proxy based on the services and industrial output data. The proxy was unchanged in April – the first month not to register a decline since September. The monthly numbers are subject to revision but the April reading is consistent with better purchasing managers' survey results, which improved further in May and June.

The monthly proxy was 0.3% below its first-quarter average in April so the preliminary second-quarter GDP estimate released on 24 July is likely to show a further fall. This should, however, be the smallest since a 0.1% drop in the second quarter of 2008.