Topic / economics

Supply-Side Policy

Productivity, capacity and policies designed to raise long-run potential output.

Core exam brief

Know the idea before you use the evidence.

Definition

Supply-side policies aim to increase the productive potential, efficiency or flexibility of an economy.

Chain of analysis

Better skills, infrastructure, competition or investment can raise productivity and shift long-run aggregate supply to the right.

Evaluation trigger

Effects are often slow, costly and uncertain; distinguish market-based from interventionist policies and consider distributional consequences.

Latest verified coverage

13 Aug 2026 · United Kingdom

Economic GrowthSupply-Side Policy

UK output per hour rose 0.7% year-on-year in Q2 2026 on the ONS preferred measure

ONS's preferred PAYE-RTI-based flash estimate showed UK output per hour 0.7% higher and output per worker 1.4% higher in Q2 2026 than a year earlier.

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Advanced additive-manufacturing equipment in a research facility

6 Aug 2026 · United States

Economic GrowthSupply-Side PolicyInflation

US productivity rose while unit labour costs increased modestly

The second-quarter figures show whether firms are producing more per hour and whether pay gains are being matched by efficiency.

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A battery research and manufacturing facility

27 Jul 2026 · United States

Economic GrowthSupply-Side Policy

US durable-goods orders edged higher in June

Orders for long-lasting manufactured products offer an early signal about business investment, factory demand and confidence in future sales.

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The interior of an advanced 3D-printed demonstration building

Analysis and example bank

13 August 2026 · United Kingdom

15-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.

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A team on a modern factory floor in Silicon Valley

26 August 2026 · United States

15-marker25-marker

U.S. GDP growth slows to 1.5% annualised in Q2 2026

U.S. real GDP grew at a 1.5% annualised rate in Q2 2026, down from 2.1% in Q1. Yet private domestic final sales grew 4.2%, making this a strong example of why students should look beyond the headline GDP number.

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Stacked freight containers at a container port