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Service industries: Key Economic Indicators

Published Monday, December 10, 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 2017, the service industries accounted for 79% of total UK economic output (Gross Value Added) and accounted for 83% of workforce jobs in March 2018.

Services Output

In the three months to October 2018 (Q4), services output increased by 0.3% compared with the three months ending July 2018 (Q3). The Information and communication and professional, scientific and technical activities sectors were the largest contributors to this growth.

The Index of Services rose by 0.2% between September and October, following 0.1% growth between August and September.

Compared with a year before, services output increased by 1.7% in the three months to October 2018.

Purchasing Managers’ Index (PMI)

In the Markit/CIPS PMI, 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 was 50.4 in November 2018, down from 52.2 in October. The November value was the lowest it has been since July 2016.

In November, new work increased at its slowest pace since July 2016, which along with heightened economic uncertainty, held back business activity growth. The lower rate of expansion in this month also reflected subdued consumer spending. The degree of business confidence regarding the year ahead was the weakest it has been since July 2016.

 

Commons Briefing papers SN02786

Author: Gloria Tyler

Topics: Economic situation, Service industries

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