While the official Q3 GDP estimate will not be published by the Office for National Statistics (ONS) until 25 October, NIESR has predicted an end to the double-dip.

In its latest monthly report the independent economic research body claimed that Q3 saw the "most robust rate of growth" in the UK since the three months to July 2010.

However, while the ONS is expected to confirm NIESR's claim later this month, its latest manufacturing output report showed a decline of 1.1% in August, while the UK trade deficit rose to £4.2bn in the same month.

Meanwhile, NIESR said that GDP growth in Q3 was artificially inflated by Olympic and Paralympic tickets sales and the bounce back from the extra public holiday in June 2011 for the Diamond Jubilee. Discounting these one-off events cut the growth figure to closer to 0.2-0.3% it said.

Following the decline in manufacturing output the ONS has said that it expects economic growth to be "at a significantly slower pace in coming quarters", while the International Monetary Fund (IMF) has slashed its growth forecast for the UK.

In what will have been a significant blow for the chancellor, the IMF's revised its UK economic forecast from 0.2% growth in 2012 to a 0.4% contraction, although it added that it expected the economy to bounce back and grow 1.1% in 2013.

With the government's hands tied by its pledge to wipe out the budget deficit over the next five years, it is widely thought that the Bank of England will renew its money-printing programme come November.