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UK Q2 productivity 0.8% lower than a year earlier

Published by Global Banking & Finance Review

Posted on August 14, 2025

1 min read

· Last updated: January 22, 2026

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UK Q2 productivity 0.8% lower than a year earlier
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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

UK Productivity Declines by 0.8% in Q2 Compared to Last Year

Analysis of UK Productivity Trends

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.

Impact of COVID-19 on Productivity

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.

Comparison with Previous Years

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.

Official Statistics Overview

(Reporting by David MillikenEditing by William Schomberg)

Key Takeaways

  • UK productivity fell by 0.8% in Q2 2025.
  • This is the steepest decline since Q3 2024.
  • COVID-19 has impacted productivity growth.
  • Output per hour is 1.5% higher than in 2019.
  • Output per worker increased by 1.1% since 2019.

Frequently Asked Questions

What is productivity?
Productivity measures the efficiency of production, typically calculated as the ratio of outputs to inputs in the production process.
What is GDP?
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.
What is economic growth?
Economic growth refers to the increase in the production of goods and services in an economy over a period, often measured by GDP.
What is the impact of COVID-19 on productivity?
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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