Italy, France drive June EU productivity surge

Productivity growth hit a two-year high in June in the European Union, driven by France and Italy, NTC Research, an economic …

Productivity growth hit a two-year high in June in the European Union, driven by France and Italy, NTC Research, an economic survey firm, said today.

The service sector led the way in France while manufacturing was the driving force in Italy.

German productivity rose too, but not as markedly and Britain had the weakest productivity growth of Europe's four biggest economies, British-based NTC said.

Telecoms was the only sector to buck a broad upwards trend, showing a decline in output per head in June, as it has every month in 2006, said a statement by NTC, which carries out monthly surveys of industry.

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Productivity growth was strongest in the media sector, then chemicals, followed by the real estate business, NTC said.

NTC's EU productivity index rose to 55.1 in June from 54.6 in May and for the euro zone it rose to 55.3 from 54.8. It increased to 56.0 from 55.6 in France, to 56.0 from 55.3 in Italy, to 55.7 from 55.0 in Germany and eased to 53.8 from 54.0 in Britain.

A figure below 50 points to decline while anything above 50 points to growth. Media, chemicals and property recorded the highest productivity growth followed by the leisure industry and metals, mining and steel, NTC's figures showed