Mubasher: UK productivity growth rate hit 12-year high in the second half of 2017, backed by a strong increase during the fourth quarter of the year.

Productivity, which reflects economic output per hour of work, expanded by 0.7% in the final three months of 2017, marking the second consecutive quarter of strong growth, data by the Office for National Statistics (ONS) showed on Friday.

With the third quarter’s growth revised up to 1%, the UK economy recorded the fastest growth pace since the global economic crisis in 2005, but the increase was largely driven by a significant decline in the number of working hours during this period, according to the ONS.

This significant improvement, however, remained well below the world’s largest economies’ productivity growth figures.

“The UK has a lot of catching up to do on the productivity front,” chief economic adviser to EY’s ITEM Club Howard Archer said.

By 03:05 pm GMT, the EUR/USD pair climbed by 0.59% to $1.4086.