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Service industries: Key Economic Indicators

Published Friday, August 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 September 2017.

Services Output

In the three months to June 2018 (Q2 2018), services output increased by 0.5% compared with the three months ending March 2018. This was the largest quarterly growth since Q4 2016. The largest contributions to this growth came from the wholesale, retail and motor trade sector which contributed 0.20% points.

Compared with a year before, services output increased by 1.5% in the three months to June 2018.

Services output in June 2018 was unchanged from May 2018, following growth of 0.2% in May.

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 fell to 53.5 in July 2018 from 55.1 in June. The July value was the slowest expansion since April.

Some businesses have commented to Markit/CIPS that the sustained hot weather in July and the World Cup had “disrupted business operations and weighed on customer footfall”.

 

Commons Briefing papers SN02786

Author: Gloria Tyler

Topics: Economic situation, Service industries

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