41 For example, Hoekman et al (2004), Stoyanov and Zubanov (2012) and Newman et al (2015). 42 See McCafferty (2014) for a discussion of productivity from a sectoral perspective. 40  10  All speeches are available online at www.bankofengland.co.uk/speeches  10  manufacturing having fallen from 17% to 7% since 1990. Because productivity growth in manufacturing is higher than in services, this shift could plausibly account for some of the fall in aggregate productivity growth. Even if we correct for this compositional effect, however, the slowdown in UK productivity growth remains. Chart 13 looks at the evolution of different UK sectors’ productivity, while Table 2 looks at the contributions of various sectors to UK productivity growth in the decades either side of the global financial crisis. Pre-crisis, the strongest rises in measured productivity were in manufacturing, information and communication and financial services, all of which experienced annual growth of over 4%. But growth was not confined to these sectors, with virtually all sectors making a positive contribution to productivity growth. In the period since the crisis, those pre-crisis trends have changed dramatically. Virtually every sector has seen productivity flat-line. The contributions of all sectors to productivity growth have fallen and most are tightly bunched around zero (Table 2). 43  Whatever has caused UK productivity growth to fall, it has done so  on a generalised, cross-sector basis. It is sometimes asserted that, without the collapse in financial services output associated with the financial crisis, the UK’s productivity performance would have held up.
The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates. This note applies to all charts and analysis using data from the ONS Research Database. Chart 16: The distribution of productivity across firms  (a) Distribution in 2014  (b) Lower tail of distribution in selected years Density 2014  Density  0.016 0.014 0.012  2002 2008 2014  0.018 0.016  0.014  0.01  0.012  0.008  0.01  0.006  0.008 0.006  0.004  0.004  0.002  0.002  0  0  -0.002 -50 0 50 GVA per worker, £  100  150  200  0.02  -0.002 -50 -30 GVA per worker, £  -10  10  Source: ONS Research Database and Bank calculations. Notes: Gross value added per worker.