The UK economy grew by just 0.2% in the three months to June 30, adding to pressure on the Government to take action to kick start the recovery.
The sluggish growth, which follows a six-month period when the economy effectively flatlined, was blamed on a series of one-off events, including the impact of the Japanese tsunami, warm weather and the Royal Wedding bank holidays.
But the figures, from the Office for National Statistics, will trigger a debate among economists and policymakers on how best to reignite growth while also tackling the gaping deficit in the public finances.
Chancellor George Osborne told the BBC: "The positive news is that the British economy is continuing to grow and is creating jobs.
"And it is positive news too that at a time of real international instability we are a safe haven in the storm."
But some economists are urging the Government to take action to stimulate the recovery, particularly as household spending remains in the doldrums and businesses struggle against a declining domestic market and pressures in overseas trade linked to the global economic slowdown.
"The UK economy might as well still be in recession, even if technically it isn't," said Nick Pearce, director of the Institute for Public Policy Research (IPPR).
Industry output declined by 1.4% during the quarter although services grew by 0.5% on increased demand for transport, storage and communication.
CBI chief economic adviser Ian Mccafferty added: "There is likely to be some bounceback over the autumn, but it's clear that the underlying economic recovery remains fragile and difficult."
Chris Elias, of Barclays Corporate in Swindon, saw signs for optimism
“According to our economists, relative to their forecasts, industrial production in the second quarter surprised on the downside, whereas the services sector surprised on the upside,” he said.
“While the fall in industrial production is more likely to reflect temporary factors, such as supply chain disruptions and the impact of warm weather, they believe the strength in the services sector is more likely to be a reflection of underlying strength in the economy, which could continue to boost growth.
“This would give some hope that, despite the economy coming to a grinding halt for the past three quarters, growth could be picking up in the coming quarters.”
