How each of us have been robbed by £2,100 over the past 12 years as productivity remains stagnant despite economic growth
- Commerzbank’s Peter Dixon says this has wiped as much as £140billion off GDP
- UK productivity now languishes near the bottom of the G7
- ‘Workers have priced themselves back into work,’ Dixon says
Sluggish productivity has cost every Briton £2,100 over the past 12 years, it has emerged.
Figures due this week are expected to show productivity – the amount of work put in for each pound the country generates – remains stagnant despite economic growth.
Commerzbank’s Peter Dixon calculates this has wiped as much as £140billion off Gross Domestic Product.
UK productivity now languishes near the bottom of the G7 – well below Germany, France and the US.
Sluggish productivity has cost every Briton £2,100 over the past 12 years, it has emerged
‘Companies are not investing and workers have priced themselves back into work,’ Dixon said. During the crisis they had a choice between losing their job and losing a pay rise.’
Separate figures this week are expected to reveal that Chancellor Philip Hammond is set for a Budget boost as economic growth accelerates.
Garry Young, chief economic forecaster at the NIESR think-tank, predicts that the Purchasing Managers Index – a key indicator of the health of the manufacturing and service sectors – is rising.
A figure above 50 indicates growth. He believes it will reach 55 for services, up from 54.3 last month.
He forecasts the manufacturing and construction index will rise to 53.1 and 54, from 52.8 and 52.9, respectively.
The Bank of England takes PMI data seriously when setting interest rates as they can indicate GDP trends.
Young has revised upwards his prediction for annual GDP growth to 1.5 per cent.