The UK economy returned to modest growth in the first three months of 2011, official figures revealed today, following a shock decline at the end of last year.

Gross domestic product (GDP) - a broad measure for the total economy - grew by 0.5% in the first quarter of the year, following an unexpected drop of 0.5% in the final weather-hit quarter of 2010, the Office for National Statistics (ONS) said.

But the ONS warned that underlying growth - that is, assuming there was no displacement of activity from the fourth quarter into the first quarter - was broadly flat.

Today’s figure is a preliminary estimate and subject to revision.

Economists previously warned that growth of less than 1% in the first quarter would be disappointing and the lacklustre performance will raise serious concerns over the economy’s ability to withstand the coalition Government’s deficit-busting austerity measures.

The sluggish growth is likely to relieve pressure on policymakers at the Bank of England to raise interest rates in the face of soaring inflation.