UK labour productivity grew by just 0.5 per cent over 2018 as a whole as Brexit uncertainty weighed on the economy, writes Ian McConnell.
Figures published yesterday by the Office for National Statistics show that output per hour worked showed a year-on-year drop for a second consecutive quarter in the final three months of last year.
Output per hour worked in the fourth quarter was down by 0.1% on the same period of 2017. This followed a 0.2% year-on-year decline in the third quarter of 2018.
Federation of Small Businesses national chairman Mike Cherry said the figures highlighted “yet again the impact of the political and economic uncertainty to the economy”.
He added: “Small business confidence has fallen through the floor as firms face a trying time amid a fragile economy.
Productivity rose 0.3% between the third and fourth quarters of 2018.
But Howard Archer, chief economic adviser to the EY ITEM Club think-tank, said: “The weak performance in Q4 2018 and weakness over the year reinforces concerns over the UK’s overall poor productivity record since the deep 2008/09 recession. The ONS reported that labour productivity rose just 0.5% over 2018 as a whole, which was below the annual average growth rate of 2% seen before the 2008/09 downturn.”
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