Analysis by the Resolution Foundation suggests UK productivity is growing more strongly than official statistics indicate, hinting that the economy may finally be shaking off the long-term effects of the 2008 financial crisis. The thinktank's findings imply that Chancellor John Healey may have inherited an economy in better shape than headline figures suggest, which matters because productivity is a key driver of growth and living standards.

The Resolution Foundation used what it says is a more accurate workforce snapshot than the widely criticised labour force survey to reach its conclusions. Principal economist Simon Pittaway said the improvement cannot be explained by job losses in low-productivity sectors such as hospitality and retail, since employment shares there remain similar to the late 2010s, nor by an early AI boom, as gains are spread across sectors. The report follows other upbeat signals, including figures showing the UK was the joint fastest-growing G7 economy in the first half of 2026, similar findings from Rachel Reeves's former adviser John Van Reenen, and a Morgan Stanley note describing the UK as being in "an OK place".