Productivity cloud should lift in time

Figures released last week confirmed that the weakness of productivity growth continues to hang like a cloud of Saharan dust over the medium-term outlook for the economy. Not only has productivity barely risen, but much of the rise seen has been due purely to the movement of labour.

However, there are good reasons to think that the winds of recovery will themselves help to blow the cloud away. As companies continue to raise their investment spending, productivity growth should accelerate and leave a clearer horizon for the recovery.