The UK economy shrank by 0.2% in the three months to September - which is expected to be the first step of a major recession.
Chancellor Jeremy Hunt warned it will mean "extremely difficult decisions" as he prepares to announce £21bn in tax rises and £33bn in public spending cuts in next week's austerity Autumn Statement.
The Office for National Statistics said there was a "slowing the services, production and construction industries". Services shrank to "flat output" and production fell 1.5%.
