United Kingdom GBP

United Kingdom Labour Productivity QoQ

Impact:
Low
Source: Office for National Statistics

Latest Release:

Date:
Surprise:
0.6%
Actual:
0.3%
Forecast: -0.3%
Previous/Revision:
-0.2%
Period: Q2

Next Release:

Date:
Forecast: -0.1%
Period: Q2
What Does It Measure?
The United Kingdom Labour Productivity QoQ measures the output per hour worked in the economy, assessing how efficiently labor is used in relation to economic output. This indicator focuses primarily on productivity across various sectors and is crucial for understanding trends in economic health and workforce efficiency at a national level.
Frequency
This report is released quarterly and typically includes preliminary estimates that may be revised in subsequent releases, with publication usually occurring around the end of the following quarter.
Why Do Traders Care?
Traders monitor labour productivity because it significantly impacts overall economic performance, influencing growth forecasts and monetary policy. Higher productivity results can boost investor confidence, leading to bullish trends for equities and a stronger currency, while lower results may generate bearish sentiments across financial markets.
What Is It Derived From?
Labour productivity is calculated by dividing the total output of goods and services by the total hours worked in the economy. This data is sourced from various surveys and government reports, incorporating responses from businesses across different sectors to accurately reflect productivity levels.
Description
This indicator is released as a preliminary estimate and is subject to revisions, with the final report providing a more accurate representation of productivity changes over the quarter. The focus on quarterly changes allows analysts to evaluate medium-term trends and assess any immediate shifts in productivity, essential for economic forecasting and policy decisions.
Additional Notes
Labour productivity is often considered a lagging indicator since it reflects changes in output after they occur, providing insights into previous economic performance. It is closely watched alongside other indicators, such as GDP growth and employment rates, to understand the broader economic landscape and potential adjustments in economic policy.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for GBP, Bullish for Stocks. Lower than expected: Bearish for GBP, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Aug 15, 2024
0.3%
 -0.3%
-0.2%
 0.6%
Nov 15, 2017
0.9%
-0.1%