Figures show services sector bouncing back

However, the Office for National Statistics said without weather distortions, growth would have been broadly flat over the two months as a whole.

The figures, which offer the first official glimpse of how the biggest sector of Britain’s economy fared in the first quarter of the year, supported the pound and pushed gilt futures to a session low.

“At face value it is quite robust,” said Alan Clarke, UK economist at BNP Paribas. “Growth in January has made up for the terrible December, but it is still early days to gauge the strength of first-quarter growth.”

Services output, which accounts for more than three-quarters of GDP, grew by 1.3 per cent on the month following a 1.1 per cent decline in December.

All five sub-sectors contributed to the recovery, with hotels and restaurants up 4.4 per cent, transport up 1.7 per cent, distribution up 1.4 per cent, business services up 1.4 per cent and government services up 0.7 per cent.

Britain suffered its coldest December in a century and transport chaos took a heavy toll on the economy, spurring a contraction of 0.5 per cent in the fourth quarter of 2010.

The strength of first quarter GDP figures, due for release next month, are expected to be crucial in determining how quickly the Bank of England raises interest rates.