The annual rate of productivity growth fell to its lowest level in 14 years which will be a disappointment for the government and the South East England Development Agency (SEEDA) both of which have put productivity improvements at the centre of economic policy.
Output per worker was a meagre half a percent higher between April and June than the preceding year – the lowest rate of growth in fifteen years and overall productivity grew by 0.4% but this was after three months of nil increase.
The star performer in the economy was manufacturing where output per worker grew at 2.3% but other sectors pulled down the overall average, particularly the public sector, which has seen productivity decline for four years in a row.
Germany, France and the US all outstrip the UK in terms of productivity per worker and per hour worked.
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