Disappointing eurozone productivity complicates ECB’s interest rate challenge, data signals

While a more productive labour force is essential for economic growth, it is also a key plank in the ECB’s case for inflation returning to target

Officials including ECB president Christine Lagarde have highlighted the importance of 'the nexus of profits, wages and productivity'. Picture: AP/Michael Probst

Eurozone productivity barely improved in the second quarter and again missed the European Central Bank’s (ECB) expectations — a blow for its efforts to bring inflation back to 2%.

Labour productivity per person fell by 0.4%, according to new data published by the ECB.