Skip to content

The Development of Price Indices for Professional Business Services, Cargo Handling and Storage & Warehousing - Quarter 3 2013

Released: 22 November 2013 Download PDF

Abstract

The Office for National Statistics has developed experimental price indices for professional services, cargo handling and storage & warehousing. This article provides an update of these experimental price indices for Quarter 3 of 2013.

Introduction

The quarterly Services Producer Price Indices (SPPIs) 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. The Office for National Statistics (ONS) has recently undertaken a development programme to expand the industrial coverage of the SPPI. This was carried out in two phases. The first phase included the development of price indices for the following industries:

  • Accountancy services,

  • Legal services,

  • Architecture services,

  • Engineering services,

  • Cargo Handling services.

The experimental price indices for these industries were first published on Friday 3 June 2011 (147.7 Kb Pdf) and quarterly updates have been published since then (please see Reference 1). The latter phase saw the development of three more industries, namely:

  • Advertising Creation & Placement services,

  • Business & Management services,

  • Storage & Warehousing services.

The experimental price indices for the latter phase along with the methodology applied in developing the indices were first published in June 2012 (1.07 Mb Pdf) .

This article provides an updated series for each of the new experimental indices developed in both phases for Quarter 3 of 2013 (July - September). For ease of illustration, Phase 1 and Phase 2 results will be presented separately. An assessment to illustrate the potential impact of these new industries in the net aggregate SPPI is also included.

A project to rebase the PPIs and SPPIs onto 2010=100 is currently taking place with price indices on a 2010=100 basis in the Quarter 4 2013 publication.

Status of Experimental Indices

Since they were first published, the SPPIs available in this development article have been labelled as experimental. Experimental statistics are new official statistics undergoing evaluation and have been published to involve users and stakeholders in their development.

As a result of a period of quality assessment of these indices, ONS intends to remove the experimental label and introduce them into the aggregate level SPPI from Quarter 4 2013. As a result this will be the last development article and the SPPIs published here will be available in the SPPI Statistical Bulletin that will be published on 26 February 2014. We welcome any feedback, questions or concerns from users relating to this proposal.

Experimental Services Producer Price Indices, Quarter 3 2013

Table 1 shows the index value history for each phase 1 experimental price index from Quarter 1 of 2010 through to Quarter 3 of 2013 (the latest period for which data are available). A full time series for each new industry is available back to Quarter 1 2005 if required, however, the data prior to 2010 have been constructed.

Table 1: Phase 1 Industries - Experimental Services Producer Price Indices, Quarter 3 2013

Not seasonally adjusted

Index values (2005=100)
    Accountancy Services Legal Services Architecture Services Engineering Services Cargo Handling Services
2010 Q1 113.5 113.5 113.5 113.5 111.3
Q2 112.1 114.4 113.3 113.8 111.6
Q3 113.0 114.6 114.0 113.5 111.8
Q4 113.7 115.1 113.6 113.9 112.0
2011 Q1 116.3 115.3 114.0 115.0 112.8
Q2 114.5 116.0 113.8 114.6 113.2
Q3 115.4 117.5 113.5 114.3 113.0
Q4 116.6 117.6 115.5 114.5 114.7
2012 Q1 117.7 118.0 115.9 116.7 117.9
Q2 116.1 118.0 113.9 117.8 118.2
Q3 117.3 119.8 113.7 116.9 118.3
Q4 118.2 120.1 116.2 117.2 118.5
2013 Q1 120.5 120.3 116.5 118.0 123.8
Q2 119.9 (r) 120.9 (r) 117.6 119.4 (r) 123.6
  Q3 119.5 121.4 117.9 119.6 124.0

Table source: Office for National Statistics

Table notes:

  1. Data on a net basis
  2. Coverage = UK
  3. All data provisional and subject to revision
  4. r = data revised compared to last article

Download table

Similarly, Table 2 shows the index value history for each phase 2 experimental price index from Quarter 1 of 2011 through to Quarter 3 of 2013. The collection of phase 2 industries commenced in Quarter 1 2011, however appropriate back series for each industry were constructed back to Quarter 1 2005 and are available upon request.

Table 2: Phase 2 Industries - Experimental Services Producer Price Indices, Quarter 3 2013

Not seasonally adjusted

Index values (2005=100)
    Advertising Creation & Placement Services Business & Management Services Storage & Warehousing Services
2011 Q1 114.7 116.5 115.1
Q2 118.2 117.6 124.3
Q3 117.1 118.7 123.9
Q4 119.8 121.8 124.6
2012 Q1 112.0 121.9 121.3
Q2 112.3 121.8 121.9
Q3 113.7 (r) 121.5 122.0
Q4 116.6 (r) 120.9 (r) 123.3
2013 Q1 110.6 121.5 (r) 122.3
Q2 113.2 (r) 121.3 (r) 123.3 (r)
  Q3 112.9 121.4 124.6

Table source: Office for National Statistics

Table notes:

  1. Data on a net basis
  2. Coverage = UK
  3. All data provisional and subject to revision
  4. r = data revised compared to last article

Download table

Quarterly percentage changes

Table 3 provides a summary of the current quarterly percentage change for phase 1 industries.

Table 3: Phase 1 Industries - Experimental Services Producer Price Indices, Quarterly Percentage Change

Not seasonally adjusted

2005=100 (SIC2007)
    Accountancy Services Legal Services Architecture Services Engineering Services Cargo Handling Services
2010 Q1 -0.1 -0.1 -0.1 -0.1 0.2
Q2 -1.2 0.8 -0.2 0.3 0.3
Q3 0.8 0.2 0.6 -0.3 0.2
Q4 0.6 0.4 -0.4 0.4 0.2
2011 Q1 2.3 0.2 0.4 1.0 0.7
Q2 -1.5 0.6 -0.2 -0.3 0.4
Q3 0.8 1.3 -0.3 -0.3 -0.2
Q4 1.0 0.1 1.8 0.2 1.5
2012 Q1 0.9 0.3 0.3 1.9 2.8
Q2 -1.4 0.0 -1.7 0.9 0.3
Q3 1.0 1.5 -0.2 -0.8 0.1
Q4 0.8 0.3 2.2 0.3 0.2
2013 Q1 1.9 0.2 0.3 0.7 4.5
Q2 -0.5 (r) 0.5 (r) 0.9 1.2 (r) -0.2
  Q3 -0.3 0.4 0.3 0.2 0.3

Table source: Office for National Statistics

Table notes:

  1. Data on a net basis
  2. Coverage = UK
  3. All data provisional and subject to revision
  4. r = data revised compared to last article

Download table

Looking at the price movements between Quarter 2 of 2013 and Quarter 3 of 2013, the key points to note are:

  • There was a fall in the price index for Accountancy services of 0.3%.

  • Price indices for Legal services, Architecture services, Cargo Handling services and Engineering services have all seen increases of 0.4%, 0.3%, 0.3% and 0.2% respectively.

Table 4 shows the quarterly percentage change for phase 2 industries.

Table 4: Phase 2 Industries - Experimental Services Producer Price Indices, Quarterly Percentage Change

Not seasonally adjusted

2005=100 (SIC2007)
    Advertising Creation & Placement Services Business & Management Services Storage & Warehousing Services
2011 Q1 -0.2 0.9 1.1
Q2 3.1 0.9 8.0
Q3 -0.9 0.9 -0.3
Q4 2.3 2.6 0.6
2012 Q1 -6.5 0.1 -2.6
Q2 0.3 -0.1 0.5
Q3 1.2 -0.2 0.1
Q4 2.6 -0.5 (r) 1.1
2013 Q1 -5.1 0.5 -0.8
Q2 2.4 (r) -0.2 (r) 0.8 (r)
  Q3 -0.3 0.1 1.1

Table source: Office for National Statistics

Table notes:

  1. Data on a net basis
  2. Coverage = UK
  3. All data provisional and subject to revision
  4. r = data revised compared to last article

Download table

Looking at the price movements between Quarter 2 of 2013 and Quarter 3 of 2013 the key points to note are:

  • There was a fall in the price index for Advertising Creation & Placement services of 0.3%.

  • Price indices for Storage & Warehousing services and Business & Management services have increased by 1.1% and 0.1% respectively.

Annual percentage change

Table 5 shows the 12 month percentage change for phase 1 industries:

Table 5: Phase 1 Industries - Experimental Services Producer Price Indices - 12 Month Percentage Change

Not seasonally adjusted

2005=100 (SIC2007)
    Accountancy Services Legal Services Architecture Services Engineering Services Cargo Handling Services
2010 Q1 1.3 1.3 1.3 1.3 0.8
Q2 -0.7 1.3 0.4 0.8 1.2
Q3 -0.2 1.2 0.7 0.3 1.1
Q4 0.1 1.3 0.0 0.3 0.8
2011 Q1 2.5 1.6 0.4 1.3 1.3
Q2 2.1 1.4 0.4 0.7 1.4
Q3 2.1 2.5 -0.4 0.7 1.1
Q4 2.6 2.2 1.7 0.5 2.4
2012 Q1 1.2 2.3 1.7 1.5 4.5
Q2 1.4 1.7 0.1 2.8 4.4
Q3 1.6 2.0 0.2 2.3 4.7
Q4 1.4 2.1 0.6 2.4 3.3
2013 Q1 2.4 1.9 0.5 1.1 5.0
Q2 3.3 (r) 2.5 (r) 3.2 1.4 (r) 4.6
  Q3 1.9 1.3 3.7 2.3 4.8

Table source: Office for National Statistics

Table notes:

  1. Data on a net basis
  2. Coverage = UK
  3. All data provisional and subject to revision
  4. r = data revised compared to last article

Download table

There is strong year on year growth across all phase 1 industries. As with previous quarters, Cargo Handling experienced the largest growth with prices in the 12 months to Quarter 3 rising by 4.8%. Architecture services experienced growth of 3.7% while Engineering services, Accountancy services and Legal services experienced growths of 2.3%, 1.9% and 1.3% respectively.

Similarly, Table 6 presents the 12 month percentage change for Advertising Creation & Placement, Business & Management and Storage & Warehousing:

Table 6: Phase 2 Industries - Experimental Services Producer Price Indices, 12 Month Percentage Change

Not seasonally adjusted

2005=100 (SIC2007)
    Advertising Creation & Placement Services Business & Management Services Storage & Warehousing Services
2011 Q1 2.7 2.6 3.9
Q2 0.9 3.1 11.0
Q3 4.2 4.5 9.7
Q4 4.3 5.5 9.5
2012 Q1 -2.4 4.6 5.4
Q2 -5.0 3.6 -1.9
Q3 -2.9 (r) 2.4 -1.5
Q4 -2.7 (r) -0.7 (r) -1.0
2013 Q1 -1.3 -0.3 (r) 0.8
Q2 0.8 (r) -0.4 (r) 1.1
  Q3 -0.7 -0.1 2.1

Table source: Office for National Statistics

Table notes:

  1. Data on a net basis
  2. Coverage = UK
  3. All data provisional and subject to revision
  4. r = data revised compared to last article

Download table

The price index for Storage & Warehousing services increased in the 12 months to Quarter 3 of 2013, by 2.1%. The price indices for Advertising Creation & Placement services and Business & Management services fell by 0.7% and 0.1% respectively.

Aggregate SPPI

In the regular SPPI Statistical Bulletin, individual SPPIs are aggregated together to create a service industry SPPI with limited coverage. This aggregate is shown in Figure 1. From Quarter 4 2013, the experimental SPPIs will be added to this aggregate increasing the coverage of the service industry and improving the measure. ONS aims to continue reviewing and, where possible expanding, the coverage of the SPPI. Each time a new industry is added, or one removed because of quality concerns, it will have an impact on the aggregate SPPIs.

The headline measure of SPPI is a net sector aggregate. By net sector, this means any inter-sector transactions are excluded in the calculation of the weights. Industry level weights on a Net Sector basis have been calculated for each of the new industries and a net aggregate SPPI has been calculated to include these new series. Please note that this analysis is for indicative purposes only and the data should not be used in place of the current published aggregate SPPI.

For comparison purposes, Figures 1 & 2 and Table 7 illustrate the potential impact of these new industries in the net aggregate SPPI.

Figure 1 shows the index values for the current aggregate SPPI against the recalculated aggregate SPPI including the new industries:

Figure 1: Comparison of Current Aggregate SPPI and Aggregate SPPI Including New Industries (Net Sector)

Figure 1: Comparison of Current Aggregate SPPI and Aggregate SPPI Including New Industries (Net Sector)
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Download chart

Figure 2 shows the 12 month percentage change for the current aggregate SPPI against the recalculated aggregate SPPI including the new industries:

 

Figure 2: Comparison of 12 Month Percentage Change in Aggregate SPPI and Aggregate SPPI Including New Industries (Net Sector)

Figure 2: Comparison of 12 Month Percentage Change in Aggregate SPPI and Aggregate SPPI Including New Industries (Net Sector)
Source: Services Producer Price Index (SPPI) - Office for National Statistics

Download chart

Table 7 shows the comparison of the 12 month percentage change figures including and excluding the new series from Quarter 1 of 2010 onwards.

Table 7: Comparison of 12 Month Percentage Change (Net Sector)

Not seasonally adjusted

2005=100 (SIC2007)
    Aggregate published SPPI Aggregate published SPPI with new industries Difference 
2010 Q1 1.6 2.0 0.4
Q2 2.4 2.7 0.3
Q3 2.4 2.4 0.0
Q4 2.7 2.5 -0.2
2011 Q1 2.4 2.4 0.0
Q2 2.3 2.4 0.1
Q3 2.3 2.5 0.2
Q4 1.8 2.2 0.4
2012 Q1 1.5 1.6 0.1
Q2 1.0 0.9 -0.1
Q3 1.2 1.1 -0.1
Q4 1.1 0.9 -0.2
2013 Q1 1.2 1.0 -0.2
Q2 0.6 (r) 0.8 0.2 (r)
  Q3 0.3 0.5 0.2

Table source: Office for National Statistics

Table notes:

  1. All data on a net basis
  2. Coverage = UK
  3. All data are provisional, subject to revision and should not be used in place of the current published SPPI
  4. r = data revised compared to last article
  5. SPPI aggregates exclude advertising placement from Quarter 1 2012. Link factors have been used to remove the effect of this weight change.

Download table

As can be seen from the table, the difference between the two series varies between -0.2 to 0.4 percentage points.

Next results and further information

The next set of results for these experimental SPPIs will be included in the main statistical bulletin published on Wednesday 26 February 2014 on the ONS website. We welcome any feedback, questions or concerns from users relating to this proposal and on the data published in this article.

If you wish to comment or would like any further information please email Kat Pegler or Alexandra Wojewodka-Dunn  or telephone +44(0)1633 456468 or +44(0)1633 651575.

Background notes

  1. 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

References

  1. Previous quarterly updates for phase 1 industries:

    Quarter 2 2011

    Quarter 3 2011

    Quarter 4 2011

  2. Previous quarterly updates for phase 1 and phase 2 industries:

    Quarter 2 2012

    Quarter 3 2012

    Quarter 4 2012

    Quarter 1 2013

    Quarter 2 2013

  3. Guide to Experimental Statistics

Content from the Office for National Statistics.
© Crown Copyright applies unless otherwise stated.