Labour productivity in the UK, as measured by output per hour, decreased 0.4 percent on quarter in the three months to September 2018, following a 0.5 percent growth in the previous period and matching preliminary estimates. It reflected an increase in the number of actual hours worked, which outpaced output growth for the quarter. Year-on-year, labour productivity went up 0.2 percent, the least since the third quarter of 2016, above earlier estimates of a 0.1 percent gain but below 1.6 percent rise in the previous period. Productivity in manufacturing went up 1.7 percent, while the significantly larger services only grew 0.1 percent. Productivity in the United Kingdom averaged 75.45 Index Points from 1971 until 2018, reaching an all time high of 101.80 Index Points in the second quarter of 2018 and a record low of 43.10 Index Points in the first quarter of 1971.
Productivity in the United Kingdom is expected to be 102.00 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 104.00 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.