The economy suffered its biggest contraction in three years in April after car production collapsed as Brexit uncertainty forced manufacturers to shut down factories.

GDP slid 0.4pc in April compared to the previous month as the services sector stagnated and manufacturing production tumbled 3.9pc, the biggest drop since 2002.

Car production slumped 24pc after companies brought forward or extended shutdowns that normally take place in the summer. Manufacturers planned for temporary outages to follow the UK's initial departure date from the EU amid fears that a no deal Brexit would disrupt "just-in-time" production.

Office for National Statistics head of GDP Rob Kent-Smith said there was "widespread weakness across manufacturing" as record stockpiling ahead of Brexit started to unwind.

"GDP growth showed some weakening across the latest 3 months, with the economy shrinking in the month of April mainly due to a dramatic fall in car production," he said.

The National Institute of Economic and Social Research warned that the economy is now on course to contract 0.2pc in the second quarter following a "marked slowdown". Economists largely pinned the slump on temporary factors but warned that the underlying picture remains weak amid subdued business investment.

"April’s GDP figures suggest that the Brexit hangover in the second quarter has been heavier than we had expected," said Capital Economics economist Ruth Gregory. She argued that Brexit had "influenced the timing of activity" and that the contraction needed to be taken in context with the first quarter growth spurt.