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Rises In Uk Productivity, Service Output Signal Stronger Recovery

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http://uk.reuters.com/article/2013/09/27/uk-britain-services-idUKBRE98Q0AN20130927

British services output inched up in July and productivity rose across the economy for the first time in two years in the second quarter, suggesting the country's recovery is moving onto a firmer footing.

The dominant service sector's output rose 0.2 percent in July from the previous month and 1.8 percent from July last year, the Office for National Statistics said on Friday.

Separate official data showed that productivity in terms of output per hour worked rose 0.5 percent in the second quarter - the first quarterly increase since the second quarter of 2011.

"The UK recovery is showing signs of becoming sustainable as improved optimism feeds through to the hard data and the return of growth kick-starts productivity," said Rob Wood, an economist at Berenberg.

Ah yes the manufacturing led recovery to rebalance the economy proving a resounding success.

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Read it to the end...

Compared with a year earlier, output per hour was 0.4 percent lower in the second quarter, and the average British worker still produces less than before the financial crisis.

So is it up or down. :lol:

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The central bank thinks Britain's workers will become more productive as the economy recovers, reducing the need for more hiring and delaying the fall in joblessness to the 7 percent threshold till at least late 2016.

Another BoE prediction :rolleyes:

Productivity has really declined since the crisis started which is quite a new thing as productivity had increased at a steady rate for many decades until 2007/2008 when the crisis started. Previous recessions haven't had such an impact on productivity including the 80s/90s recession.

130917-chart1.gif

and

http://

www.tradingeconomics.com/united-kingdom/productivity

(see the long term chart since 1959)

So this time is very unusual compared to the previous trend.

Of course Mark "fertile imagination" Carney says that the recovery is gathering pace but so far "gathering pace" doesn't seem to be showing up in the productivity chart and the last paragraph of the reuters article seems to confirm that.

Compared with a year earlier, output per hour was 0.4 percent lower in the second quarter, and the average British worker still produces less than before the financial crisis.

Edited by billybong

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Another BoE prediction :rolleyes:

Productivity has really declined since the crisis started which is quite a new thing as productivity had increased at a steady rate for many decades until 2007/2008 when the crisis started. Previous recessions haven't had such an impact on productivity including the 80s/90s recession.

130917-chart1.gif

and

http://

www.tradingeconomics.com/united-kingdom/productivity

(see the long term chart since 1959)

So this time is very unusual compared to the previous trend.

Of course Mark "fertile imagination" Carney says that the recovery is gathering pace but so far "gathering pace" doesn't seem to be showing up in the productivity chart and the last paragraph of the reuters article seems to confirm that.

Why bother being productive when:

1) It is not rewarded via wages.

2) The economy doesn't need productivity increases as they can just print profits.

3) Productivity gains can be simulated via reducing interest rates.

4) Corp's (eho run the country) do not invest in R&D.

5) Why invest in productive enterprises when you can speculate in residential property?

On another note:

identify-propaganda-800X800.jpg

Edited by Gone to Ireland.

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Productivity has really declined since the crisis started which is quite a new thing as productivity had increased at a steady rate for many decades until 2007/2008 when the crisis started.

You need to question the measure of productivity there.

If you buy a house for £100k and sell it for £150k, you've produced 50k. How much work did that take? Ten years ago it could have been ***-all: phenomenal productivity for a few hours actual work. Since 2008, you'd need to do some very substantial work to generate that money, so your productivity is much lower.

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http://www.independent.co.uk/news/business/news/britains-recovery-driven-by-spending-not-trade-8842716.html

Britain's recovery is being powered by consumer spending, rather than exports and investment, raising doubts about the sustainability of this year's solid economic upturn.

The latest official estimate of GDP in the second quarter yesterday confirmed the economy grew by 0.7 per cent over the second quarter, but they also revealed this activity was driven by consumer spending and by firms building up their inventories.

Consumer spending was 0.3 per cent higher on the quarter, and up 1.8 per cent on an annual basis.

There is no incentive to save you might as well spend your savings and buy stuff especially if you need it. Luckily capitalism doesn't require capital because this could be one fecked up recovery.

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