Services sector surges ahead
Friday 28 February 1997
The statistics are the result of an initiative launched by the then-Chancellor of the Exchequer, Norman Lamont, to improve the quality of economic statistics. The scale of the late 1980s boom had taken policy-makers by surprise partly because information on services - which make up two-thirds of the economy - was so limited.
The Bank of England has been pressing since last May for the collection of more statistics on the sector because of fears that the emphasis on manufacturing industry in the monthly economic statistics is as misplaced now as it was at the end of the 1980s.
In its Inflation Report, the Bank pointed out that the only timely monthly figures on the bulk of the economy were the official retail sales statistics and a CBI survey of retailing, wholesaling and motor traders.
Previously published figures for the total service sector show that it grew 3.4 per cent in real terms in the year to December, twice the rate of growth of industrial production.
So far the additional figures are limited to quarterly turnover statistics for only a proportion of total services. They do not break down the sales growth into separate price and activity increases. The ONS has calculated the figures back to the start of 1995.
There were marked increases in turnover in a wide range of businesses in the year to the third quarter of 1996. For example, sales of new and used cars, car rental, restaurant and campsite turnover, and film and video activities were all sharply higher compared with the same quarter a year earlier. So was turnover in "other" services, including dry cleaning, hair dressing and funerals.
There was also strong growth in business services such as law, accountancy, tax and management consultancy and market research.
Computer activities, from software consultancy and data processing to maintenance and repair, grew at an equally fast pace. The industry - which excludes software sales - was worth nearly pounds 15bn in 1995.
However, advertising turnover, and sales by travel agencies and tour operators fell during the year.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...