The British economy decreased by 0.5 percent in the fourth quarter of 2010 comparing with the previous quarter, the Office for National Statistics (ONS) reported on Tuesday.

It was the first decline of the GDP output in Britain since the UK economy began its recovery from the deep recession in the last quarter of 2009.

The ONS report showed that business services and finance, construction and distribution, hotels and restaurant were the largest contribution to the negative UK economic growth in the fourth quarter of 2010.

Total services output in UK declined by 0.5 percent in the last quarter of 2010, compared with a rise of 0.5 percent in the previous quarter. Construction output dropped by 3.3 percent the last three months of last year, compared with an increase of 3.9 percent in the previous quarter

British output of the production increased by 0.9 percent in the last quarter of 2010, compared with a gain of 0.5 percent in the third quarter. Manufacturing output rose 1.4 percent compared with an increase of 1.0 percent in the previous quarter. However, mining and quarrying output decreased by 2.5 percent in the quarter comparing with the third quarter.

British economy suffered a serious recession in the past years and the GDP of the country declined for six quarters in a row from the second quarter of 2008 to the third quarter of last year.

The UK economy began its recovery from the last quarter of 2009 and the GDP increased by 1.1 percent in the second quarter of 2010, the strongest gain in last year.

Some analysts have said that a large scale government spending cut would hurt the recovery in the coming quarter, although a double-dip recession seems unlikely.