Commenting on the figures, IBEC senior economist Fergal O’Brien said: "The latest numbers on the state of the economy show that activity is now beginning to stabilise, albeit at substantially lower levels than this time last year. Taking account of seasonal variations, output in the Irish economy actually increased marginally in the third quarter. Unfortunately, the small rise in GDP was largely due to a substantial fall in imports, which in itself is a reflection of continued weak domestic demand. "Following something of an improvement in the second quarter, consumer spending fell by 0.7% in the third quarter – this is fairly consistent with what we saw in retail sales trends as well. GNP, which strips out the contributions of multinational companies, continued to contract in the third quarter, it is therefore far too early to herald an exit from recession. "In terms of the pace of contraction in the Irish economy, the worst is now clearly behind us. Most sectors of activity are showing signs of stabilisation, with the exception of the construction sector, which continued to lurch downwards in the third quarter. Today’s numbers do not change our view that GDP will fall by about 7.5% this year and will drop on an annual basis again in 2010. We can now see some light at the end of the tunnel, however, and the economy should begin to grow again around the middle of next year. Feedback received from businesses suggests that last week's Budget will support rather than hinder confidence as we enter 2010."