Lord Patten askedHer Majesty's Government:
Whether United Kingdom productivity is falling; and, if so, why. [HL5362]
§ Lord Sainsbury of TurvilleWhole economy productivity, on a per-hour worked basis, was 0.5 per cent higher in quarter one 2002 than in the same 119WA quarter last year. This compares with the latest peak in productivity growth of 3.5 per cent in 2000 quarter one.
Productivity growth is influenced by a wide range of factors and last year's marked slowdown in the world economy clearly dampened output and productivity gains, especially in externally exposed industries and sectors.
GDP is forecast to increase by 2 to 2.5 per cent in 2002, gathering pace during this year as the world economic recovery becomes more broadly based. There are already encouraging signs that productivity growth is beginning to pick up following last year's world downturn. For example, manufacturing productivity in the three months to May was 1.3 per cent higher than in the previous three months, its fastest growth since January 2001.