UK labour market dynamics GTM –UK | 5 Productivity since the pre-crisis peak Wage growth Nominal wage growth* y Index level, productivity per worker rebased to 100 as of Q4 2007 % change year on year Headline CPI 118 6 Real wage growth UK econom UK productivity, had pre-2008 trend continued 3 0 112 -3 US -6 '02 '04 '06 '08 '10 '12 '14 '16 106 UK unemployment rate and consumer confidence Index level (LHS); % (RHS) UK Consumer confidence 100 94 Unemployment rate '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Source: (Left) BEA, ONS, Thomson Reuters Datastream, J.P. Morgan Asset Management. (Top right) Bloomberg, ONS, J.P. Morgan Asset Management. *Nominal wages include bonuses. (Bottom right) FactSet, GFK, ONS, J.P. Morgan Asset Management. Guide to the Markets - UK. Data as of 31 December 2016. 5