13 August 2026 · United KingdomReal exampleDeep Dive15-marker25-marker
UK output per hour rose 0.7% year on year in Q2 2026
ONS’s preferred RTI-based estimate showed UK output per hour 0.7% higher in Q2 2026 than a year earlier and output per worker 1.4% higher. The alternative LFS-based estimate was weaker, making measurement uncertainty a ready-made evaluation point.
Chain
Higher productivity → more output per unit of labour → lower unit costs and higher productive capacity → LRAS can increase → stronger non-inflationary growth and scope for higher real wages
Evaluation
Early productivity estimates are uncertain and revised; a single quarter does not establish a lasting trend, and the ONS preferred administrative-data measure currently differs from the Labour Force Survey estimate.
Diagram
LRAS diagram showing higher productive capacity