---
title: "UK Private Sector Productivity Falters as Only Three Industries Show Growth"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2025-02-19T04:59:26+00:00"
modified: "2025-02-19T04:59:26+00:00"
date: 2025-02-19
canonical: "https://stockmark.it/uk-private-sector-productivity-falters-as-only-three-industries-show-growth/"
category: "Financial"
categories: ["Financial", "UK Economy"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-98-2.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# UK Private Sector Productivity Falters as Only Three Industries Show Growth

**Published:** February 19, 2025
**Author:** Stockmark.IT Website
**Categories:** Financial, UK Economy
**Featured image:** ![Red sale sign in shop window reflecting shoppers. January sales hit UK furniture and fashion. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-98-2.jpg?fit=1200%2C800&quality=89&ssl=1)

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Fresh data from the Office for National Statistics reveals a concerning trend in UK productivity, with merely three out of 18 private sector industries recording growth in the latest quarter. Transport, mining and administration services emerged as the sole sectors demonstrating productivity gains on an output-per-hour basis during the three months to September.

The retail sector bore the heaviest impact, experiencing a stark 5.4 per cent decline in productivity. Energy and health sectors followed closely behind, with drops of 4.2 per cent and 4.1 per cent respectively. These declines paint a troubling picture for the UK’s economic efficiency.

Broader economic indicators from the final quarter of 2023 showed a marginal improvement, with workers producing 0.7 per cent more output per hour compared to the previous quarter’s 1.1 per cent decline. However, the year-on-year comparison reveals a 0.8 per cent decrease in productivity.

The Office for Budget Responsibility’s optimistic forecast of 1.1 per cent annual productivity growth until 2029 has drawn scrutiny from economic analysts. These projections potentially provide chancellors with unrealistic fiscal headroom, raising concerns about the accuracy of medium-term growth forecasts.

Economists attribute the persistent productivity challenges to insufficient private and public sector investment, a trend that has plagued wealthy economies since the 2008 global financial crisis. The ONS’s data collection methodology has faced criticism due to limited sample sizes, though plans are underway to implement an enhanced labour force survey by 2027.

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