Finance
UK Q2 productivity 0.8% lower than a year earlier
Published by Global Banking and Finance Review
Posted on August 14, 2025
1 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 14, 2025
1 min readLast updated: January 22, 2026
UK productivity decreased by 0.8% in Q2 2025, marking the steepest drop since 2024, influenced by COVID-19's impact.
LONDON (Reuters) -British output per hour worked in the three months to June was 0.8% lower than a year earlier, the steepest annual decline since the third quarter of 2024, official figures showed on Thursday.
Weak productivity growth has been a problem for Britain and many other Western economies for years and has become somewhat more sluggish since the COVID-19 pandemic.
Britain's Office for National Statistics said output per hour worked in the second quarter of 2025 was 1.5% higher than in 2019. Output per worker has risen just 1.1% since then.
(Reporting by David MillikenEditing by William Schomberg)
Productivity measures the efficiency of production, typically calculated as the ratio of outputs to inputs in the production process.
Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country's borders in a specific time period.
Economic growth refers to the increase in the production of goods and services in an economy over a period, often measured by GDP.
The COVID-19 pandemic has led to disruptions in various sectors, resulting in decreased productivity growth in many economies, including the UK.
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