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Service industries: Key Economic Indicators

Published Monday, February 11, 2019

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 September 2018.

Services Output

In the three months to December 2018, services output increased by 0.4% compared with the three months ending September 2018. The professional, scientific and technical activities sector made the largest contribution to this growth.

Services output decreased by 0.2% between November and December, the lowest monthly growth since February 2018.

Services output for 2018 increased by 1.7% compared with 2017. This is the lowest annual services growth since 2011.

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 50.1 in January 2019. This was down from 51.2 in December, the lowest reading for two-and-a-half years and the second-weakest reading since December 2012.

Political uncertainty was cited as a prime reason for caution. There was a small fall in employment, combined with higher pay adding to input costs.

Business confidence rebounded slightly from December's 29-month low, but was still one of the lowest seen since early 2009.

 

Commons Briefing papers SN02786

Author: Gloria Tyler

Topics: Economic situation, Service industries

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