By Jonathan Davies

The UK's productivity grew at its fastest annual pace since the first quarter of 2012, in Q1, according to the Office for National Statistics (ONS).

Productivity, as measured by output per hour, grew 1.3% compared with the first three months of 2014. Compared with the previous quarter, productivity was up 0.3%.

The ONS said productivity in the manufacturing and production industries fell on a quarterly and annual basis. But output per hour in the services industry improved.

There is currently a big focus on improving productivity in the UK, with levels lagging behind the rest of Europe's major economies.