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Statistical bulletin: Annual Business Survey, 2010 - Provisional Results This product is designated as National Statistics

Released: 17 November 2011 Download PDF

Key Points

  • The whole economy, as measured by the ABS, showed a 5% (£53 billion) decrease in approximate Gross Value Added at basic prices (GVA) from 2008 to 2009, followed by a 3% (£26 billion) increase from 2009 to 2010.
  • The 'provisional' 2010 turnover figures show an increase in 2010 back towards 2008 levels, as demonstrated in the Production industries (led by Manufacturing) and the Distribution industries. The greatest recovery is shown by the Service industries which returned to slightly higher levels than 2008.
  • The largest contributions to the whole economy recovery are from Distribution (with a 4%, £6 billion increase in GVA), Services (with a 3%, £14 billion increase in GVA) and Production (with a 4%, £8 billion increase in GVA).
  • Within the Distribution industries 'Retail trade, except of motor vehicles and motorcycles' shows year on year growth from 2008 to 2010 helped by the increase in commodity prices.

Annual Business Survey (ABS)

The Annual Business Survey (ABS), formerly the Annual Business Inquiry part 2 (ABI/2), is the Office for National Statistics (ONS) financial information survey covering approximately two thirds of the UK economy. Further details on the sectors covered are given in the background notes section.

The survey samples UK businesses, and other related establishments, according to their employment size and industry sector.

The statistics produced help to improve the overall quality of the UK National Accounts and the measurement of Gross Domestic Product (GDP).

In addition to the National Accounts, the ABS is also the main source of data to enable the requirements of the European Structural Business Statistics Regulation (SBSR) to be met and the financial information is also used by the Scottish Government and Welsh Assembly Government in the compilation of both regional and country specific Input/Output tables and Indices of Production.

Whole Economy

Details of Income and Expenditure - Whole Economy (Sections A-S) 2008-2010

Provisional 2010 United Kingdom data

£ million
           
Standard Description Year Total turnover Total purchases Approximate
Industrial of goods materials gross value
Classification and services added at basic
(Revised 2007) prices
           
A-S Whole Economy 2008 3,168,430 2,169,174 963,921
2009 2,969,409 2,009,088 910,739
2010 3,117,029 2,146,842 937,016
           
A (part) Agriculture, hunting  2008 4,761 3,240 1,723
and forestry 2009 4,160 2,759 1,533
2010 4,721 3,288 1,663
           
B-E Production industries 2008 677,230 437,677 222,540
2009 616,350 396,188 197,609
2010 650,480 426,094 205,913
           
F Construction industries           2008 223,399 137,768 84,812
2009 189,537 115,068 70,599
2010 184,130 112,714 68,657
           
G Distribution industries   2008 1,224,568 1,046,323 157,794
  2009 1,141,778 967,189 149,450
2010 1,210,680 1,042,127 155,271
           
H-S Service industries 2008 1,038,472 544,165 497,051
2009 1,017,584 527,885 491,548
2010 1,067,018 562,619 505,512
           

Table source: Office for National Statistics

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Details of income and expenditure - Whole Economy (Sections A-S) 2008-2010

Provisional 2010 United Kingdom data

Details of income and expenditure - Whole Economy (Sections A-S) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Details of total turnover by sector 2008-2010

Provisional 2010 United Kingdom data

Details of total turnover by sector 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Production Industries

Following the 9% drop in turnover and purchases between 2008 and 2009, there has been an increase in turnover (5%) and purchases (7%) between 2009 and 2010 returning to levels slightly lower than in 2008. Overall for Production this results in an 11% (£25 billion) decrease in approximate GVA from 2008 to 2009, followed by a 4% (£8 billion) increase from 2009 to 2010.

  • This recovery is mainly driven by the 'Manufacturing' industries which showed a 10% (£13 billion) increase in approximate GVA from 2009 to 2010. Of this, £3 billion is in the manufacture of motor vehicles (a 90% increase in approximate GVA from 2009 to 2010). From May 2009 to April 2010 there was a Government backed 'UK car scrappage scheme'.

  • 'Mining & Quarrying' (which includes oil and gas extraction) also shows recovery in 2010 with an increase in turnover and a drop in the value of purchases resulting in an 18% (£4 billion) increase in approximate GVA from 2009 to 2010.

  • During this same three year period the 'Electricity, gas, steam and air conditioning supply' industry has shown gradual increases in turnover (5% in 2009, 3% in 2010). However purchases remained flat from 2008 to 2009 whilst stocks increased during a time of lower gas prices. As these stocks were depleted during 2009 - 2010 purchases increased by 12%. Over this period there were significant increases in gas prices. The result is a 26% (£8 billion) reduction in approximate GVA from 2009 to 2010.

Details of Income and Expenditure - Production Industries (Sections A-E) 2008-2010

Provisional 2010 United kingdom data

£ million
           
Standard Description Year Total turnover Total purchases Approximate
Industrial of goods materials gross value
Classification and services added at basic
(Revised 2007) prices
           
B-E Production industries 2008 677,230 437,677 222,540
2009 616,350 396,188 197,609
2010 650,480 426,094 205,913
           
B Mining and quarrying 2008 61,172 27,122 34,159
2009 47,959 25,038 23,023
2010 50,731 23,924 27,175
           
C Manufacturing  2008 500,246 332,630 149,441
2009 448,517 293,911 130,227
2010 477,204 316,022 143,016
           
D Electricity, gas, steam and air  2008 86,790 63,763 23,627
conditioning supply  2009 91,425 63,819 29,191
2010 93,804 71,860 21,452
           
E Water supply, sewerage, 2008 29,022 14,163 15,314
waste management, and  2009 28,448 13,419 15,168
remediation activities 2010 28,742 14,288 14,270
           

Table source: Office for National Statistics

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Details of income and expenditure - Production Industries (Sections B-E) 2008-2010

Provisional 2010 United Kingdom data

Details of income and expenditure - Production Industries (Sections B-E) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Details of total turnover - Production Industries (Sections B-E) 2008-2010

Provisional 2010 United Kingdom data

Details of total turnover - Production Industries (Sections B-E) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Construction Industries

In the Construction industries, there has been year on year decreases in both turnover and purchases across the three year period 2008 - 2010. However the decrease in turnover (15%) and purchases (16%) from 2008 to 2009 has been followed by a smaller decrease in turnover (3%) and purchases (2%) from 2009 to 2010. Overall for the Construction industries this results in a 17% (£14 billion) decrease in approximate GVA from 2008 to 2009, followed by a further 3% (£2 billion) decrease from 2009 to 2010.

  • The 'Construction of buildings' industry shows a similar pattern resulting in a 14% (£4 billion) drop in approximate GVA from 2009 to 2010.

  • The 'Specialist construction' industry (which comprises demolition and refurbishment) showed similar drops in turnover and purchases from 2008 to 2009, but then shows growth in turnover (7%) and purchases (10%) from 2009 to 2010 resulting in a 5% (£1.5 billion) increase in approximate GVA.

  • The smaller 'Civil engineering' industry shows 12% decreases in turnover across both periods, while purchases decrease at 10% (from 2008 to 2009) and 19% (from 2009 to 2010).

Details of Income and Expenditure - Construction Industries (Section F) 2008-2010

Provisional 2010 United Kingdom data

£ million
           
Standard Description Year Total turnover Total purchases Approximate
Industrial of goods materials gross value
Classification and services added at basic
(Revised 2007) prices
           
F Construction industries 2008 223,399 137,768 84,812
2009 189,537 115,068 70,599
2010 184,130 112,714 68,657
   
41 Construction of buildings 2008 91,608 59,926 30,994
2009 78,884 48,247 27,479
2010 74,050 48,012 23,620
   
42 Civil engineering  2008 47,644 32,974 14,701
2009 41,826 29,646 12,044
2010 36,552 23,923 12,491
   
43 Specialised construction  2008 84,147 44,867 39,117
activities 2009 68,827 37,176 31,076
2010 73,527 40,778 32,545
           

Table source: Office for National Statistics

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Details of income and expenditure - Construction Industries (Section F) 2008-2010

Provisional 2010 United Kingdom data

Details of income and expenditure - Construction Industries (Section F) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Details of total turnover - Construction Industries (Section F) 2008-2010

Provisional 2010 United Kingdom data

Details of total turnover - Construction Industries (Section F) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Notes for Construction Industries

  1. Please note that the ABS' annual figures for the Construction industries should not be compared with annual figures released in the monthly 'Output in the Construction Industry' because:

    The two surveys measure different concepts of this industry.

    Although both quote figures for a calendar year, the 'Output in the Construction Industry' are based on the aggregate of the responses to 12 monthly surveys, whereas ABS figures are based on annual responses covering a range of business years.

    The ABS figures will always be larger than those in the 'Output in the Construction Industry' because the latter excludes: Property developers (SIC 41.1); Payment on purchased services (architect's, technical engineering, etc.); Payment to subcontractors, unless the subcontractors are classified to construction and therefore part of the survey; Value of land; Value of materials sold (which are not part of a structure); Fixtures, equipment and tools that are sold.

Distribution Industries

In a similar way to Production, the Distribution industries showed a 7% drop in turnover and purchases between 2008 and 2009, followed by an increase in turnover (6%) and purchases (8%) between 2009 and 2010, returning to levels slightly below those in 2008. Overall for the Distribution industries this results in a 5% (£8 billion) decrease in approximate GVA from 2008 to 2009, followed by a 4% (£6 billion) increase from 2009 to 2010.

  • The 'Wholesale and retail trade and repair of motor vehicles and motorcycles' followed a similar pattern resulting in a 23% (£4 billion) increase in approximate GVA from 2009 to 2010. From May 2009 to April 2010 there was a Government backed 'UK car scrappage scheme'.

  • 'Retail trade, except of motor vehicles and motorcycles' shows a 6% (£4 billion) increase in approximate GVA from 2009 to 2010, but follows a trend of year on year increases (1% from 2008 to 2009, 5% from 2009 to 2010) in both turnover and purchases across the three year period 2008 - 2010. During this time there was an increase in commodity prices and fluctuations in VAT. In December 2008 the VAT level dropped from 17.5% to 15%. The VAT level then returned to 17.5% in January 2010, followed by a final increase to 20% in January 2011.

  • 'Wholesale trade, except of motor vehicles and motorcycles' contributes a 4% (£2 billion) decrease in approximate GVA from 2009 to 2010, because the increase in purchases outstrips the increase in turnover by £10 billion.

Details of Income and Expenditure - Distribution Industries (Section G) 2008-2010

Provisional 2010 United Kingdom data

£ miilion
           
Standard Description Year Total turnover Total purchases Approximate
Industrial of goods materials gross value
Classification and services added at basic
(Revised 2007) prices
           
G Distribution industries   2008 1,224,568 1,046,323 157,794
  2009 1,141,778 967,189 149,450
2010 1,210,680 1,042,127 155,271
           
45 Wholesale and retail trade 2008 135,669 115,372 20,957
and repair of motor vehicles      2009 125,781 105,582 18,185
and motorcycles 2010 132,783 111,668 22,402
           
46 Wholesale trade, except of 2008 777,154 684,714 71,714
motor vehicles and   2009 700,062 612,621 64,677
motorcycles 2010 746,174 668,629 62,376
           
47 Retail trade, except of motor 2008 311,745 246,237 65,123
vehicles and motorcycles  2009 315,936 248,986 66,587
2010 331,723 261,830 70,492
           

Table source: Office for National Statistics

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Details of income and expenditure - Distribution Industries (Section G) 2008-2010

Provisional 2010 United Kingdom data

Details of income and expenditure  - Distribution Industries (Section G) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Details of total turnover - Distribution Industries (Section G) 2008-2010

Provisional 2010 United kingdom data

Details of total turnover - Distribution Industries (Section G) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

Download chart

 

Service Industries

The Service industries show the strongest recovery in 2010, with a drop in turnover (2%) and purchases (3%) between 2008 and 2009, followed by an increase in turnover (5%) and purchases (7%) between 2009 and 2010, returning to levels slightly higher than in 2008. Overall for the Service industries this has resulted in a 1% (£5 billion) decrease in approximate GVA from 2008 to 2009, followed by a 3% (£14 billion) increase from 2009 to 2010.

  • The main Service industries following this recovery trend from 2009 to 2010 are: section H: 'Transport and Storage' (a 4%, £2 billion increase in approximate GVA), section M: 'Professional, scientific and technical activities' (a 2%, £2 billion increase in approximate GVA) and section I: 'Accommodation and food service activities' (a 4%, £1 billion increase in approximate GVA).

  • Section N: 'Administrative and support service activities' shows a 10% (£6 billion) increase in approximate GVA from 2009 to 2010, because while purchases remained static the turnover increased by 4% (£6 billion).

  • Section P: 'Education' follows a trend of year on year increases in turnover and purchases of 5 - 12% across the three year period 2008 - 2010 resulting in a 25% (£2.5 billion) increase in approximate GVA from 2009 to 2010.

  • Section Q: 'Human health and social work activities' also follows a trend of year on year increases in turnover and purchases of around 9%, but with purchases increasing by 24% from 2009 to 2010, the resulting increase in approximate GVA from 2009 to 2010 is only £0.2 billion.

Details of Income and Expenditure - Service Industries (Sections H-S) 2008-2010

Provisional 2010 United Kingdom data

£ million
           
Standard Description Year Total turnover Total purchases Approximate
Industrial of goods materials gross value
Classification and services added at basic
(Revised 2007) prices
           
H-S Service industries 2008 1,038,472 544,165 497,051
2009 1,017,584 527,885 491,548
2010 1,067,018 562,619 505,512
           
H Transport and Storage  2008 136,874 79,942 59,866
2009 128,120 73,563 57,512
2010 134,142 77,119 59,571
           
I Accommodation and food 2008 67,674 36,047 31,620
service activities 2009 65,439 35,540 29,818
2010 67,610 36,576 30,985
           
J Information and   2008 179,890 94,003 87,751
communication 2009 175,072 90,028 86,583
2010 184,106 99,886 84,834
           
K (Part) Insurance, reinsurance and   2008 93,285 38,561 54,259
pension funding, except  2009 91,359 35,580 55,138
compulsory social security 2010 100,775 43,827 56,564
           
L Real estate activities  2008 42,098 17,128 25,720
2009 43,842 17,670 26,517
2010 44,994 17,160 28,370
           
M Professional, scientific and   2008 190,833 84,624 106,191
technical activities 2009 187,506 82,736 104,788
2010 192,776 86,075 106,843
           
N Administrative and support        2008 150,219 79,932 70,361
service activities  2009 143,529 77,219 66,584
2010 149,798 77,112 72,936
           
P Education  2008 26,060 16,192 9,955
(excludes public sector) 2009 27,437 17,473 9,982
2010 30,655 18,462 12,449
           
Q Human health and social  2008 34,078 12,143 22,015
work activities  2009 37,296 13,372 23,839
(excludes public sector) 2010 40,633 16,572 24,021
           
R Arts, entertainment and   2008 87,649 69,521 15,588
recreation 2009 89,736 70,142 17,055
2010 91,110 73,082 15,230
           
S Other service activities  2008 29,812 16,073 13,725
2009 28,248 14,562 13,732
2010 30,419 16,748 13,710
           

Table source: Office for National Statistics

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Details of income and expenditure - Service Industries (Sections H-S) 2008-2010

Provisional 2010 United Kingdom data

Details of income and expenditure - Service Industries (Sections H-S) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Details of total turnover - Service Industries (Sections H-S) 2008-2010

Provisional 2010 United Kingdom data

Details of total turnover - Service Industries (Sections H-S) 2008-2010
Source: Annual Business Survey (ABS) - Office for National Statistics

Notes:

  1. H Transport and storage I Accommodation and food service activities J Information and communication K (part) Insurance, reinsurance and pension funding, except compulsory social security L Real estate activities M Professional, scientific and technical activities N Administrative and support service activities P Education Q Human health and social work activities R Arts, entertainment and recreation S Other service activities

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Background notes

  1. ABS Updates

    Further releases of ABS data will be:

    • June 2012 - Revised 'national' results for ABS 2010
    • July 2012  - Provisional regional results for ABS 2010

  2. ABS Revisions Policy

    Planned Revisions

    Planned revisions usually arise from either the receipt of additional data from businesses or the correction of errors to existing data by businesses responding to the ABS.  Those of significant magnitude will be highlighted and explained.

    These revisions to published ABS data can be expected at the following times in the normal course of operation of the ABS:

    a) Figures for the current survey year will usually be revised between the provisional and revised national releases.

    b) The accompanying figures for the previous survey year will be revised at the current survey year's revised national data release and provisional regional data release.

    All other revisions will be regarded as unplanned and will be dealt with by non-standard releases. All revisions will be released in compliance with the same principles as other new information.

    Unplanned revisions

    All revisions outside those detailed above will be regarded as unplanned.  In addition revisions to the current and previous survey years may be issued as unplanned revisions if they are considered to be large enough and of sufficient interest to users that a delay till the next standard release is not justifiable.   The timing with which revisions are released will take into account:

    a) The need to make the information available to users as soon as practicable,

    and

    b) The need to avoid two or more revisions (to the same data items) in quick succession, where this might cause confusion to users.

  3. Basic Quality Information

    A Quality Report for ABS can be found at Quality reports for business statistics. This report describes, in detail, the intended uses of the statistics presented in this publication, their general quality and the methods used to produce them.

  4. Coverage

    The results in this Statistical Bulletin represent approximately two thirds of the UK economy. The presentation is in line with the Standard Industrial Classification SIC (2007). The industries covered are:

    Agriculture (support activities), hunting, forestry and fishing - Section A 
    Production industries - Sections B-E
    Construction industry - Section F
    Distribution industries - Section G                                                                                     
    Service industries - Sections H, I, J, K (Groups 65.1 and 65.2 only), L, M, N, P (excludes public sector), Q (excludes public sector and Group 86.2), R and S

    Gross value added for Group 41.1 (Section F) – Development of building projects, is included to meet user needs although not considered a National Statistic.

    The main areas excluded are Agriculture (Groups 01.1, 01.2, 01.3, 01.4 and 01.5), Financial intermediation (64, 65.3, 66), Public administration and defence (section O).

  5. Definitions

    Gross value added (GVA) represents the amount that individual businesses, industries or sectors contribute to the economy. Broadly, this is measured by the income generated by the business, industry or sector less their intermediate consumption of goods and services used up in order to produce their output. GVA consists of labour costs (for example, wages and salaries) and an operating surplus (or loss). The latter is a good approximation to profits. The cost of capital investment, financial charges and dividends to shareholders are met from the operating surplus.

    Data collected and published through the ONS Annual Business Survey are used to produce an approximate estimate of GVA at basic prices. This measure is approximate because it does not allow fully for certain types of National Accounts concepts such as taxes, subsidies or income earned-in-kind.

    The ABS forms a major data input to the production of Input-Output Annual Supply and Use Tables used to set the annual level of UK Gross Domestic Product. These tables also show industry estimates of GVA at basic prices, but are different from those shown in the ABS. In producing the Input-Output based estimates of GVA at basic prices fully consistent with the European System of Accounts 1995, there are essentially four key adjustments required to the survey based data: coverage adjustments; conceptual and valuation adjustments; quality adjustments; and coherence adjustments. Details are available in the notes to the United Kingdom Input-Output Analyses.

  6. Further information

    Provisional 2010 UK national results at SIC (2007) 4 digit class level will be available free of charge from the Office for National Statistics website .

    Additional standard extracts are available on request. Bespoke analyses are also available but there will be a charge for these. For more information about either of these services please e-mail abs@ons.gsi.gov.uk or telephone +44(0)1633 456592 for standard extracts or +44(0)1633 456601 for bespoke analyses.

    Articles describing the Inter Departmental Business Register (IDBR), which provides the sampling frame, appeared in the November 1995 and February 1998 editions of Economic Trends, explaining the move of business surveys to the IDBR in more detail. The November 2000 edition of Economic Trends (no 564) contained an article detailing the development of the Annual Business Inquiry http://www.ons.gov.uk/ons/rel/elmr/economic-trends--discontinued-/no--564--november-2000/the-development-of-the-annual-business-inquiry.pdf, together with methodological information. Further information on the IDBR can be found at http://www.ons.gov.uk/ons/about-ons/who-we-are/services/unpublished-data/business-data/idbr/index.html.

    Information on SIC (2007) is available on the National Statistics website at http://www.ons.gov.uk/ons/guide-method/classifications/current-standard-classifications/standard-industrial-classification/index.html.

  7. Release policy

    Details of the policy governing the release of new data are available from the Media Relations Office.

    National Statistics are produced to high professional standards set out in the Code of Practice for Official Statistics. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference.
    © Crown copyright 2011.

    You may use or re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information policy Team, The national Archives,Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk

    These national Statistics are produced to high professional standards  and released according to the arrangements approved by the UK Statistics Authority.

  8. General

    Follow ONS at Facebook: www.facebook.com/statisticsons   and at twitter: www.twitter.com/statisticsons

  9. Contact

    Pete Pring
    Annual Business Survey

    pete.pring@ons.gsi.gov.uk
    Telephone: +44 (0)1633 456338

  10. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

Statistical contacts

Name Phone Department Email
Pete Pring +44 (0)1633 456338 Annual Business Survey pete.pring@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
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