The UK's double-dip recession is not as deep as previously feared after revised figures showed a smaller contraction in the second quarter of the year.
The Office for National Statistics (ONS) said gross domestic product (GDP) - a broad measure of the economy - fell 0.4% between April and June in the second upward revision.
The Bank of England has witnessed "signs of a slow recovery"
Its initial estimate of a 0.7% contraction shocked the City in July, but smaller than previously thought falls in the production, manufacturing and construction sectors improved the decline to 0.5% last month and now 0.4%.
Hopes are now mounting of a return to growth in the third quarter after Bank of England Governor Mervyn King said last week there were "signs of a slow recovery".
However, the the UK "still has a tough job in developing significant sustainable growth given tighter fiscal policy, still significant pressures on consumers and soft global growth," according to Howard Archer of IHS Global Insight.
"Further out there remains a very serious risk that Greece could leave the Eurozone which would undoubtedly have some negative impact on the UK economy, even if the fall out was largely contained by strong action from Eurozone policymakers. At this stage we suspect the UK will struggle to grow by more than 1% in 2013."
Retail figures from the CBI on Wednesday also offered some welcome cheer after revealing a modest sales increase on the high street this month.