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Service industries: Key Economic Indicators

Published Thursday, January 4, 2018

Service industries: Data for the sector that incorporates the retail sector, the financial sector, the public sector, business administration and cultural activities.

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The service industries include the retail sector, the financial sector, the public sector, business administration and cultural activities.

In 2016, the service industries accounted for 80% of total UK economic output (Gross Value Added) and accounted for 84% of workforce jobs in December 2016.

Services Output

In the three months to October 2017, services output increased by 0.3% compared with the three months ending July 2017. The biggest driver of this growth was retail trade at 0.06%.

Services output increased by 0.2% in October 2017 compared to September.

Compared with a year before, services output increased by 1.3% in October 2017; this growth is at its lowest since October 2013.  This is the first Index of Services release to incorporate VAT using data from 469,440 businesses across 35 industries.

 

Purchasing Managers’ Index (PMI)

The Markit/CIPS UK Services PMI is an important indicator of output and confidence in the sector. A value of 50 means that there is no change compared to the previous month. Values above 50 indicate an expansion, and values below 50 a contraction.

The UK services PMI rose from 53.8 in November to 54.2 in December, signifying sharper growth in activity. However, Markit also noted that the flow of incoming new work was at its slowest since August 2016, and that input price inflation is at a three-month high. 

Commons Briefing papers SN02786

Author: Gloria Tyler

Topics: Economic situation, Service industries

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