Statistical bulletin: Annual Business Survey, 2010 - Provisional Results

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

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

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.

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

Provisional 2010 United Kingdom data

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

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.

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

Provisional 2010 United Kingdom data

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

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.

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

Provisional 2010 United Kingdom data

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

Source: Annual Business Survey (ABS) - Office for National Statistics

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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.

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

Provisional 2010 United Kingdom data

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

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

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