The Index of Services increased by 1.8% in July 2013 compared with July 2012, following growth of 2.8% in June 2013 compared with June 2012. In order of their contribution to growth: business services & finance increased by 2.1%; distribution, hotels & restaurants increased by 4.2%; and transport, storage & communication increased by 2.4%. In contrast, government & other services decreased by 0.3%.
Between June 2013 and July 2013 the Index of Services increased by 0.2%. The largest upward contribution to growth came from business services & finance, which increased by 0.3%. Distribution, hotels & restaurants, and government & other services increased by 0.4% and 0.1% respectively. The only downward contribution to growth came from transport, storage & communication, which decreased by 0.1%.
In recent years, services have followed a different path from gross domestic product (GDP) overall. Growth in the Index of Services since 2010 has reversed most of the decline seen in 2008 and 2009; in Q2 2013, the Index of Services was 0.3% below its peak level in Q1 2008. By contrast, GDP remains some 3.0% below the previous peak; the difference is primarily due to weakness in the construction and production industries during 2011 and 2012.
Source: Office for National Statistics
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