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KPMG comments on today’s productivity figures

KPMG comments on today’s productivity figures

Yael Selfin, Chief Economist at KPMG UK, comments on today’s Q2 productivity figures

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“Today’s figures showed a pick-up in productivity growth to 0.5% in Q2, following a poor performance in the first quarter. This allowed productivity to rise by 1.4% in the year to the second quarter, representing some improvement but remaining below the 2% average before the 2008-9 recession.    

 

“Improvements were driven by the services sector, with retail & wholesale trade and hotel and restaurants continuing with the strong performance earlier this year, while transport and storage and professional services also picked up. Within manufacturing, chemicals and pharmaceuticals, performance remained strong while basic metals and metal products performance continued to deteriorate.  Figures for the public sector showed a 2% decline in productivity in the second quarter following a pick up earlier in the year.   

 

“The figures today show the UK economy is not out of the woods yet. A significant challenge remains to bring back productivity performance to where it needs to be in order for households to see any meaningful rise in their purchasing power.”

  

“The Chancellor will need to announce more measures in his Budget later this month han what has already been trailed, in order to reverse the poor productivity performance the UK has experienced since the recession. As his reserves are likely to be depleted, other measures will need to be implemented to help create a more agile economy.”

 

 

-ENDS-

 

 

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Notes
to Editors:

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff.  The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and territories and has 200,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

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