Labour productivity in Q2 2019 was down by 0.5%, compared with the same quarter for 2018, according to the latest Office for National Statistics report.

The ONS report shows a dip in productivity across the U.K with consecutive quarters of zero growth in 2019. This represents a continuation of the “productivity puzzle”, with productivity since the 2008 downturn growing more slowly than during the long period prior to the downturn.

The reports also highlights the contrast with past downturns during which productivity initially fell, but subsequently recovered in a relatively sustained fashion whilst returning to the previous trend rate of growth.

Non-manufacturing (e.g. agriculture, forestry and fishing; mining and quarrying; electricity, gas, steam and air-conditioning supply; and water supply, sewerage, waste management and remediation activities) and construction industries offer a positive contribution but are outpaced by negative growth in all other industries. At the same time, services productivity growth fell 0.8% as hours worked grew faster than gross value added.