UK productivity fell for the first time since 2015 in the first quarter, as political and economic uncertainty impacts on another key figure.

The productivity of UK workers fallen to levels not seen since before the financial crisis levels, according to official figures.

Hourly output fell by 0.5 percent, figures from the Office for National Statistics (ONS) showed on Wednesday, 0.4 percent below the figure seen at the end of 2007.

 

ONS head of productivity Philip Wales said: “UK labour productivity growth has struggled since the 2008 economic downturn, and the fall in the first quarter of 2017 brings to an end a recent run of quarters of positive growth.”

Service sector growth slumps

Service sector companies also reported a slump in growth on Wednesday, representing a downturn in one of the economy’s key figures.

Service sector companies make up 80 percent of the UK’s economic output, but reported that they had experienced subdued business and consumer confidence in June.

The UK Services PMI dropped to to 53.4 in June, down from 53.8 in May.