Official figures show that profitability at British companies fell to its lowest rate in eight years in the second quarter of 2009, driven by a steep fall in gas prices which hit energy producers.
The Office for National Statistics said the net rate of return by private non-financial corporations was 11.6% in the second quarter, its weakest since the same quarter in 2001. This compared with a downwardly revised 12% in the first three months of this year.
It was the sixth consecutive monthly fall in the measure, and analysts said further falls were likely as the UK economy sets out on a slow and bumpy path to recovery.
The ONS said the drop was driven by a fall in the profitability rates of North Sea oil and gas producers, which fell to a four year low of 33.6% from 38.4% in the previous three months, due to a steep fall in gas prices.
In contrast, the data showed the net rate of return from manufacturing companies - which have been hard it by falling sales in the downturn - rebounded from a 17-year low in the first quarter to 6.7%.
