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Service industries: Key Economic Indicators

Published Wednesday, February 7, 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 83% of workforce jobs in September 2017.

Services Output

Preliminary estimates suggest that in Q4 2017, service sector output increased by 0.6% in real terms compared with Q3, up from growth of 0.4% in the previous quarter.

In the three months to November 2017, services output increased by 0.4% compared with the three months ending August 2017. The largest contributions to growth over the quarter came from financial service activities and retail trade, each contributing 0.05% points.

Compared with a year before, services output increased by 1.3% in the three months to November 2017; this was equal to the three months to October 2017 and is the lowest since October 2013. Services output increased by 0.4% in November 2017 compared to October.

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 53.0 in January 2018 from 54.2 in December, signifying a slowdown in growth in activity. This was the slowest upturn in services output for 16 months. This stemmed from relatively weak gains in new work.

 

Commons Briefing papers SN02786

Author: Gloria Tyler

Topics: Economic situation, Service industries

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