Home Brexit UK productivity falls at fastest rate in five years

UK productivity falls at fastest rate in five years

by LLB Reporter
8th Oct 19 2:51 pm

Brexit uncertainty is compounding a weak spot in the UK economy as the UK’s productivity has dropped by its fastest pace in five years.

Official figures show’s that output per hour has fallen by 0.5% year-on-year between April and June.

The Office for National Statistics (ONS) said that quarter on quarter, productivity dropped by 0.2%.

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.”

Howard Archer, chief economic adviser to the EY ITEM Club said, “Heightened concerns over Brexit – especially serious concerns among many companies of the UK leaving the EU without a ‘deal’ at the end of October – has clearly caused companies to limit their investment with damaging implications for productivity.”

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