The UK economy exited a technical recession in the first quarter with the economic output growing better than expected led by a rebound in the services output and household spending.

Gross domestic product grew 0.6 percent from the fourth quarter, when the economy shrunk 0.3 percent, preliminary estimates from the Office for National Statistics showed Friday. Output had declined 0.1 percent in the third quarter last year.

Economists had expected the first quarter growth to come in at 0.4 percent.

GDP rose 0.2 percent year-on-year in the first quarter, beating expectations for stagnation.

The monthly GDP indicator grew 0.4 percent sequentially in March after 0.2 percent gain in February, which was revised up from 0.1 percent. In January, GDP rose 0.3 percent.

Economists had forecast a 0.1 percent increase for March.