Labour productivity in the UK, as measured by output per hour, fell by 0.5 percent quarter-on-quarter in the three months to March 2019, down from a preliminary 0.6 percent decrease and following a 0.3 percent rise in the previous period. It was the biggest decline since the last quarter of 2015, as labour productivity in services dropped (-0.5 percent vs 0.5 percent in Q4) and in manufacturing fell further (-0.5 percent vs -0.3 percent). Year-on-year, productivity went down 0.2 percent, the third consecutive fall. Productivity in the United Kingdom averaged 75.73 Index Points from 1971 until 2019, reaching an all time high of 101.80 Index Points in the fourth quarter of 2017 and a record low of 43.10 Index Points in the first quarter of 1971.
Productivity in the United Kingdom is expected to be 103.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Productivity in the United Kingdom to stand at 105.00 in 12 months time. In the long-term, the United Kingdom Productivity is projected to trend around 108.00 Index Points in 2020, according to our econometric models.