UK productivity suffers worst drop in five years

09 Oct 2019

Productivity in the UK fell at its fastest annual rate for five years during the second quarter of 2019, according to the Office for National Statistics (ONS).

Productivity – measured by output per hour – fell by 0.5% after two previous quarters of zero growth. The ONS figures showed a 1.9% hit in manufacturing productivity, on an annual basis, in the second quarter.

The UK economy could enter recession if a second consecutive quarter of negative growth is confirmed. The uncertainty surrounding Brexit has been blamed as a factor behind negative growth.

Commenting on the figures, Richard Heys, Deputy Chief Economist at the ONS, said: 'Labour productivity has continued the weak trajectory it has followed over the last year. Both manufacturing and services saw a fall on this time last year, with only a couple of other relatively small sectors contributing positively. This confirms the broad base of the UK's productivity challenges.'

Meanwhile, Tej Parikh, Chief Economist at the Institute of Directors (IoD), said: 'These figures hammer home the impact uncertainty is having on the business environment.

'Unsure of what's around the corner, businesses' investment in the new equipment and technology that drives up their performance has been stifled.'

Register for our newsletter

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register

Weston-super-Mare

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

01934 415022

Cheddar

Bath Street
Cheddar
Somerset
BS27 3AA

01934 743274


Home | Contact us | Accessibility | Disclaimer & Privacy Policy | Help | Site map |

© 2020 Four Fifty Partnership. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be found at auditregister.org.uk under the reference C001092613.

"four fifty partnership" is a trading name of Four Fifty Partnership Limited. Registered in England. Company Number 5032008. Registered Office 34 Boulevard, Weston super Mare, Somerset BS23 1NF.

Directors: Richard Acreman BSc CTA, Joy Boswell FCCA FCA, Peter Ison BA FCA and Nick Gravell FCCA FCA.

Professional Indemnity Insurers: Nexus Underwriting Limited 52-56 Leadenhall Street, London EC3A 2EB (Policy Number: BC6210PIA194). The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.