Rolling coverage of the latest economic and financial news, as
PageGroup and Robert Walters both suffer falling UK profits
Latest: UK productivity falls by 0.5%
Introduction: two UK recruiters warn on profits
- PageGroup: UK profits down 4.1% as markets deteriorate
- Robert Walters: Brexit, China and Hong Kong protests all
Today’s data show that Britain has achieved no productivity
growth in the last four quarters.
Productivity fell by 0.2% year-on-year in the third quarter of
2018. It then stagnated in Q4 2018 and Q1 2019, followed by the
0.5% slump in April-June.
“Today’s figures confirm the UK is on the verge of a
productivity recession. Since the financial crisis, productivity
has been stagnant but now we are seeing a definitive decline, which
sets a dangerous precedent in a weakening wider economic context.
This will ultimately impact wages, living standards and how
competitive the UK’s economy is in relation to other nations.
“It’s time for the entire business community to get match
fit to compete for the next decade.”
The Institute of Directors is adamant that Brexit
uncertainty is making the UK less productive.
Tej Parikh, the IoD’s chief economist, says
this morning’s weak productivity figures “hammer home”
the damage of uncertainty.
“Unsure of what’s around the corner, businesses’
investment in the new equipment and technology that drives up their
performance has been stifled. Many companies are also trimming
their investment pipelines for the year ahead to build up a cash
cushion in anticipation of challenging economic conditions
“Policymakers have been distracted from putting together the
various pieces of the productivity puzzle, ranging from the skills
agenda to infrastructure improvements. It will take a while before
recent pledges by the Government on road and broadband networks
filter into the productivity numbers.
Source: FS – All-News2-Economy
Recruitment firms hit by Brexit, as UK faces 'productivity recession' – business live