In a recent report released by the Office for National Statistics, it was revealed that the UK has seen the strongest two quarters of productivity growth since the financial crisis, almost ten years ago. The statistics found that output per hour rose by 0.8% in the three months to December 2017, following growth of 0.9% in the previous period. This growth in productivity is set to provide encouragement to those policy makers who have struggled with the low productivity growth since the recession in 2008. The findings also showed that there was a better than expected rise in wages; which economists have highlighted as significant.
Yael Selfin, chief economist at KPMG commented that the productivity growth was ‘very encouraging’. Selfin said “If stronger productivity continues into 2018, the Bank of England may decide to hold at least once on raising the rates this year.”