The ONS productivity release is out.
Performance is still horrible. Pre recession grwoth in GDP per hour was 2%, now it's been 1% for a decade. There is a very slight pick up in the quarterly rate, but nothing very strong.
This means we still have a 20% gap with the competition
What is going on? It seems to be a combination of many things. One very helpful release are the MFP numbers, now quarterly. So part of the slowdown is capital, but most is TFP.
One thing that is a big change is the contribution of labour allocation. In the previous release this was very large, accounting for 60% of the slowdown in output per hour. This release excludes sector L and finds that it now accounts for very little of the slowdown, in that it was negative before the recession and is still negative.
There is also a large contribution of financial services in London to the slowdown. Perhaps it's a combination of lots of these small things.