The headwinds and tailwinds for UK productivity

Since the onset of the financial crisis, productivity in the UK has slowed and there are various factors that could be to blame, writes Parmenion Capital Partners' Meera Hearnden.

Some argue productivity in the services sector has impacted overall productivity. In the UK, the services sector makes up around 78% of GDP and over 80% of total employment, so the sector is critical to analysing the performance of the economy as a whole. UK economic growth slows in Q3 Between 1995 and 2005 productivity in the service sector grew by 2% per annum on average. Since 2005, it has grown by an average of 0.6% each year. This compares to manufacturing productivity, which has grown by an average of 2.7% per annum since 1995. Before the financial crisis, the services sector...