Skip to content

Statistical bulletin: Services Producer Price Index, Quarter 3 2011 This product is designated as National Statistics

Released: 23 November 2011 Download PDF

Key points

  • Net sector aggregate of selected SPPI's 12 month inflation rose 2.4 per cent in the third quarter of 2011.
  • Between the second and third quarter of 2011 net sector aggregate of selected SPPI's fell 0.1 per cent.
  • Gross sector aggregate of selected SPPI's 12 month inflation rose 2.0 per cent in the third quarter of 2011.
  • Between the second and third quarter of 2011 gross sector aggregate of selected SPPI's fell 0.2 per cent.

Summary of Services Producer Price Index

The Services Producer Price Index (SPPI), formerly the Corporate Services Price Index (CSPI), is constructed from a statutory quarterly survey. The SPPI's are primarily a suite of individual price indices that provide information on price change for a limited range of service industries. Each SPPI captures quarterly changes in the price received for services provided by UK businesses to other UK businesses and Government. These individual price indices are also aggregated together to create a 'service industry' SPPI with limited coverage (it does not provide full coverage of the 'service sector').

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

Services Producer Price Index - Net Sector

In the third quarter of 2011, movements in the net sector aggregate of selected services producer price index were as follows:

  • 12 month inflation rose 2.4 per cent compared with a rise of 2.5 per cent in the second quarter of 2011.

  • Between the second and third quarter of 2011 the net sector aggregate services producer price index fell 0.1 per cent, mainly reflecting price decreases in freight forwarding, advertising placement and sea & coastal water freight. These were partially offset by a price increase in renting services of civil engineering.

Output Prices (Net Sector) - Aggregate SPPI

United Kingdom

Percentage change (not seasonally adjusted)1,2
    12 month   3 month
2010 Q1 1.6 0.8
Q2 2.4 1.2
Q3 2.4 0.0
Q4 2.7 0.7
2011 Q1 2.8 0.9
  Q2 2.5   0.9
  Q3  2.4    -0.1

Table source: Office for National Statistics

Table notes:

  1. The aggregate SPPI is an aggregate of the individual industry level SPPI's published in this Statistical Bulletin. It does not provide full coverage of the service sector.

  2. Aggregate indices exclude Financial Intermediation (Banks)

Download table

Aggregate SPPI (Net Sector)

United Kingdom

Aggregate SPPI (Net Sector) and Producer Price Index: 12 month percentage change. The graph shows how the annual aggregate SPPI (Net Sector) inflation compares with the producer price index for all manufactured goods.
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Notes:

  1. The graph shows how the annual net sector aggregate SPPI inflation compares with the producer price index for all manufactured products.

Download chart

Notable industry movements and contributions to the net aggregate Services Producer Price Index - 3 month change to quarter 3 2011

3 month change to quarter 3 2011: Industry specific percentage change, latest quarter on previous quarter

United Kingdom

Percentage change
Freight Forwarding -2.9
Advertising Placement -1.7
Sea & Coastal Water Freight -3.1
Industrial Cleaning -0.8
Waste Disposal 1.0
Maintenance of Motor Vehicles 0.8
Publishing Services 0.6
Freight Transport by Road 0.4
Renting Services of Civil Engineering 3.7

Table source: Office for National Statistics

Download table

Contributions to the net aggregate SPPI, latest quarter on previous quarter percentage change

United Kingdom

Contribution to the aggregate SPPI: latest quarter on previous quarter percentage change
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Download chart

Notable industry movements and contributions to the net aggregate Services Producer Price Index - 12 month change to quarter 3 2011

12 month change to quarter 3 2011: Industry specific percentage change, latest quarter on corresponding quarter of previous year

United Kingdom

Percentage change
Sorted Recovered Materials Services 33.4
Freight Transport by Road 3.4
Publishing Services 4.5
Advertising Placement 5.5
Sewerage Services 11.6
Maintenance of Motor Vehicles 4.9
Waste Disposal 6.3
Renting Services of Civil Engineering 4.2
Property Rental 0.5
Freight Forwarding -4.5

Table source: Office for National Statistics

Download table

Contribution to the net aggregate SPPI, latest quarter on same quarter of previous year percentage change

United Kingdom

Contribution to the aggregate SPPI: Latest quarter on same quarter of previous year percentage change
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Download chart

Main contributions to the net aggregate Services Producer Price Index 12 month rate

The largest upward effects to the net aggregate services producer price index over the past 12 months came from:

  • sorted recovered materials services 

  • freight transport by road

  • publishing services.

Other notable upward contributions to the 12 month change came from: sewerage services, advertising placement and maintenance of motor vehicles

These upward movements were partially offset by a downward contribution from freight forwarding. 

Freight Transport by Road

United Kingdom

12 month percentage change for Freight Transport by Road - Q3 2006 - Q3 2011
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Download chart

Publishing Services

United Kingdom

12 month percentage change for Publishing Services Q3 2006 to Q3 2011
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Notes:

  1. See background note 5 of this Statistical Bulletin

Download chart

Sorted Recovered Materials Services

United Kingdom

12 month percentage change for Sorted Recovered Materials Services - Q3 2006 to Q3 2011
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Notes:

  1. See background notes 5 and 6 of this Statistical Bulletin

Download chart

 

Services Producer Price Index - Gross Sector

In the third quarter of 2011, movements in the gross sector aggregate of selected services producer price index were as follows:

  • 12 month inflation rose 2.0 per cent, unchanged from the second quarter of 2011.  

  • Between the second and third quarter of 2011 the gross sector aggregate services producer price index fell 0.2 per cent, compared to an increase of 0.6 per cent between the first and second quarter of 2011.

Aggregate SPPI (Net and Gross Sectors)

United Kingdom

The graph shows the aggregate SPPI annual percentage change for both the net and gross sector series for the period Q3 2006 to Q3 2011
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Notes:

  1. This graph depicts the aggregate SPPI annual percentage change for both the net and gross sector series.

Download chart

Background notes

  1. Triennial review of Producer Price Indices and Service Producer Price Indices

    The Office for National Statistics (ONS) is required by Government to regularly review each of its statistical surveys. We are currently in the process of conducting a review of the PPI and SPPI and would be grateful to hear from users of these outputs. Further information, along with copies of user questionnaires, can be found through the following links:

  2. Review of the MM17: Price Index Numbers for current Cost Accounting

    The Office for National Statistics (ONS) conducts regular reviews of all of its publications. Previous reviews of the PPI publications have suggested that the frequency of the MM17 could be reduced without any significant impact on users.

    The primary users of indices in tables 1 and 2 were in fact National Accountants, who used these data as deflators for the Capex and Stocks series in the National Accounts. Following the reclassification to the Standard Industrial Classification 2007, National Accounts are using alternative sources to deflate the accounts.

    Indices in tables 3 and 4, which are still used for asset valuations, are also published in our MM22 publication. Based on the previous user feedback, and the change in requirements for the National Accounts, the ONS will suspend the MM17 publication following the November 2011 publication, due to be released on 29 December 2011.

    We will publish a response to this consultation and a proposed way forward for the MM17 report in the New Year.

  3. SPPI Development

    A development project to increase the industrial coverage of the SPPI has been in place since 2009. Recently the project has focused on the following industries:

    • Legal Services,

    • Architecture and Engineering,

    • Accountancy,

    • Cargo Handling.

    An article summarising the findings from this recent stage of the project will be published on Friday 25 November 2011, including experimental new price indices for these industries.

    The article will be appear on the SPPI section of the ONS website.

  4. Link to Summary Quality Report

    A Summary Quality Report for the SPPI (139.3 Kb Pdf) can be found on the ONS website. This report describes, in detail, the intended uses of the statistics presented in this Statistical Bulletin, their general quality and the methods used to produce them.

  5. Implementation of SIC 2007 in ONS: Update on SPPI  

    Services Producer Prices has implemented the change to the Standard Industrial Classification 2007 (SIC 2007). The most significant change to SPPI involves the reclassification of ‘recovered secondary raw materials’ and ‘publishing’. These are no longer classified in the manufacturing sector, but are now classified under services.

    Further information on the changes and impact of the SIC 2007 on SPPI can be found in an article in Economic and Labour Market Review (84.1 Kb Pdf) .

    Any comments about this work and its impact on SPPI please contact: ppi@ons.gsi.gov.uk or sppi@ons.gsi.gov.uk.

  6. Sorted Recovered Materials Services

    The SPPI index for sorted recovered materials services (38.32) uses the measurement of price change for recovered material ‘products’ as a proxy. Under the SIC2007 project these recovered material products, along with publishing services, were reclassified out of the manufacturing industry and into SPPI.

  7. Relevance to users

    On 10 May 2010, the UK Statistics Authority Assessment team accredited the Services Producer Price Indices (SPPI) as a new National Statistic. The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.

    Designation can be broadly interpreted to mean that the statistics:

    • meet identified user needs;

    • are well explained and readily accessible;

    • are produced according to sound methods, and

    • are managed impartially and objectively in the public interest.

    Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.

    Further information regarding the UK Statistics Authority assessment (Assessment Report 25) can be found on their website.

    Detailed information relating to the published SPPIs and the development of the price index can be accessed on the ONS website.

  8. Index numbers shown in this Statistical Bulletin are on a net sector basis. These relate only to transactions between the corporate services sector and other sectors. Detailed tables also contain gross sector indices which include transactions within the corporate services sector.

  9. Indices relate to average prices per quarter. The full effect of a price change occurring within a quarter will only be reflected in the index for the following quarter. All index numbers exclude VAT and are not seasonally adjusted. Since SPPIs exclude VAT, they are not affected by the increase in the standard rate of VAT to 20 per cent from 4 January 2011.

  10. SPPI inflation is the percentage change in the net sector index for the latest quarter compared with the corresponding quarter in the previous year.

  11. A number of external data sources are currently used in the compilation of the SPPI:
    • Property rental payments – Investment Property Databank (IPD),

    • Business telecommunications – Office of Communications (Ofcom),

    • Financial Intermediation (Banks) – Bank of England (BoE),

    • Sewerage services – Office of Water Services (Ofwat),

    • Business rail fares – Office of Rail Regulation (ORR),

    • National post parcels - Parcelforce.

  12. Following a quality review by ONS in January 2007 a decision was made to withdraw the Banking SPPI from publication. As a result the index has been re-developed and was re-introduced in Q3 2008. Under the re-development, the quality of the data collection and processing has been improved and the number of products included in the index has increased. However, the new index is not regarded as proxy for all Financial Intermediation services within the Standard Industrial Classification (SIC) 64. It has not therefore been included in the aggregate SPPI. The services measured are classified to SIC 64.19/1 and are published as a separate index known as the “SPPI for Financial Intermediation (Banks)”.

  13. Accuracy

    SPPI policy is to show significant revisions but to suppress minor changes to avoid unnecessary inconvenience to users. Indices for the most recent two quarters are regarded as provisional and can be changed as later data become available. The ONS website contains information on the SPPI revisions policy.

  14. Publication Policy

    The complete run of data in the tables of this Statistical Bulletin is also available to view and download in other electronic formats free of charge using the National Statistics Datasets and Reference Tables website service. Users can download the complete release in a choice of zipped formats or view and download their own selections of individual series. The Datasets and Reference Tables service can be accessed on the ONS website.

  15. 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.


  16. Copyright and reproduction

    © Crown copyright 2011

    Under the terms of the Open Government Licence and UK Government Licensing Framework, anyone wishing to use or re-use ONS material, whether commercially or privately, may do so freely without a specific application for a licence, subject to the conditions of the OGL and the Framework.

    For further information, contact the Office of Public Sector Information, Crown Copyright Licensing and Public Sector Information, Kew, Richmond, Surrey, TW9 4DU.

    Tel: +44 (0)20 8876 3444

    Email psi@nationalarchives.gsi.gov.uk

  17. Follow ONS on Twitter or Facebook or view our podcasts on YouTube.

  18. 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

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

Statistical contacts

Name Phone Department Email
Kevin Buckthought +44 (0)1633 456628 Prices ppi@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
Content from the Office for National Statistics.
© Crown Copyright applies unless otherwise stated.