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

Released: 14 June 2012 Download PDF

Key points

  • The UK economy, as measured by the Annual Business Survey (ABS), recorded a rise in approximate Gross Value Added at basic prices (aGVA) of 4 per cent (£34 billion) between 2009 and 2010, recovering more than half of the 6 per cent (£59 billion) fall seen between 2008 and 2009
  • The Service sector led this recovery with aGVA rising to 1 per cent (£7 billion) above the level seen in 2008. Production and Distribution also recovered, although not yet to the 2008 levels
  • The largest contribution to the whole economy comes from the Distribution sector. In 2010, Distribution contributed 39 per cent of UK turnover, 49 per cent of purchases and 16 per cent of aGVA
  • Within the Distribution industries Retail trade, except of motor vehicles and motorcycles (Division 47) shows year on year growth from 2008 to 2010 helped by the increase in commodity prices
  • The ABS 2010 Revised results when compared to the Provisional results published on 17 November 2011 show minimal revision for the Whole economy. There were upward revisions of 0.3 per cent (£8 billion) in turnover, 0.04 per cent (£839 million) in purchases and 0.1 per cent (£1 billion) in aGVA

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 and structural business 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. It collects a variety of information from businesses including turnover, purchases, employment costs, capital expenditure and stocks. Some of these are used to produce an approximate estimate of Gross Value Added at basic prices (aGVA). This measure is approximate because it cannot allow fully for some national Accounts concepts such as taxes, subsidies or income earned in kind. This adjustment is made later based on other surveys in the production of National Accounts.

aGVA is a measure of the income generated by businesses within their industries and sectors, less the cost of goods and services used up to create the income. The main component of income is turnover, while purchases is the main component of the consumed goods and services (referred to as intermediate consumption). Stock levels which can rise or fall can also impact on aGVA, as can the values of subsidies received or duty paid. Businesses' employment costs are met from the value of aGVA, leaving an operating surplus which is a close approximation for profit.

The statistics produced by the ABS are essential feeders to the overall quality of the UK National Accounts and the measurement of Gross Domestic Product (GDP). 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 GDP. These tables also show industry estimates of GVA at basic prices, but are different from those shown in the ABS. In producing Input-Output based estimates of GVA at basic prices that are fully consistent with the European System of Accounts 1995, there are essentially four key adjustments 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.

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. This regulation ensures that key statistics on the structure of businesses are composed in a way which is comparable across Europe. The financial information is also used by the Scottish Government and the Welsh Government in the compilation of both regional and country specific Input-Output tables and Indices of Production.

Revised 2010 UK national results at SIC (2007) 4 digit class level are available free of charge via the 'Data in this release' button at the top of this publication, or from the ABS webpages on the ONS website.

Additional standard extracts containing more detail 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 email abs@ons.gsi.gov.uk or telephone +44(0) 1633 456592 for standard extracts or +44 (0)1633 456601 for bespoke analyses.

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Whole economy

The UK economy, as measured by the Annual Business Survey (ABS), recorded a rise in approximate Gross Value Added at basic prices (aGVA) of 4 per cent (£34 billion) between 2009 and 2010, recovering more than half of the 6 per cent (£59 billion) fall seen between 2008 and 2009.

The Service sector led this recovery with aGVA rising to 1 per cent (£7 billion) above the level seen in 2008. Production and Distribution also recovered, although not yet to the 2008 levels

The recession and recovery described by the ABS between 2008 and 2010 is in line with Gross Domestic Product (GDP) figures published in the Quarterly National Accounts.

Note: To see what is included in the ABS measure of the UK Whole Economy, refer to background note 3 (ABS coverage).

Table 1: Details of Income and Expenditure - Whole Economy (Sections A-S) 2008-2010

Revised 2010 United Kingdom data

£ billion
  Standard Industrial Classification Revised 2007
Year Total turnover Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
Section
A-S - Whole Economy 2008 3,168 2,169 964
2009 2,969 2,016 905
2010 3,125 2,148 938
         
A (Part) - Agriculture, forestry 2008 5 3 2
and fishing 2009 4 3 2
2010 5 3 2
         
B-E - Production industries 2008 677 438 223
2009 611 394 196
2010 657 427 210
         
F - Construction industries 2008 223 138 85
2009 186 114 69
2010 183 111 69
         
G - Distribution industries 2008 1,225 1,046 158
2009 1,143 969 149
2010 1,220 1,048 154
         
H-S - Service industries 2008 1,038 544 497
2009 1,025 537 489
2010 1,061 558 504

Table source: Office for National Statistics

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Figure 1: Details of Income and Expenditure - Whole Economy (Sections A-S) 2008-2010

Revised 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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Figure 2: Details of Total Turnover by Sector - Whole Economy (Sections A-S) 2008-2010

Revised 2010 United Kingdom data

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

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Agriculture, forestry and fishing (Section A)

Within Section A, the ABS covers only hunting, forestry, fishing and the support activities to agriculture. Commentary has not been included because its size in terms of economic output, as measured by the ABS, is small in comparison to the other sections of the whole economy. However, data for these parts of Section A can be found in the reference tables linked to this bulletin.

The other parts of agriculture, which include crop and animal production, are covered by the Department for Environment, Food and Rural Affairs (DEFRA).

Production industries (Sections B-E)

Within the Production sector there was growth between 2009 and 2010 shown by an increase in turnover of 7 per cent (£45 billion), which, with an 8 per cent (£33 billion) increase in purchases resulted in aGVA increasing by 7 per cent (£14 billion). This is in contrast to the 10 per cent drop in turnover and purchases (£66 billion and £44 billion respectively), as well as a 12 per cent (£27 billion) reduction in aGVA between 2008 and 2009.

The 2010 recovery in Production is mainly driven by the Manufacturing industries (Section C), which saw a notable increase in aGVA of nearly 12 per cent (£15 billion). The manufacture of Motor vehicles (SIC Group 29.1) is responsible for £3 billion of this aGVA increase, where turnover and aGVA almost reached 2008 (pre financial crisis) levels. From May 2009 to April 2010 the Government introduced a temporary car scrappage scheme which aided the industry. Under this scheme owners of cars at least 10 years old received £2,000 off the price of a new vehicle with half of the money being paid by the Government and half by the car maker when their old car was scrapped.

Mining and quarrying (Section B, which includes oil and gas extraction) also shows a recovery in 2010. There was a significant increase of 15 per cent (£4 billion) in aGVA due largely to the increase in the price of a barrel of oil. However, the 2010 turnover figure of £50 billion is still 20 per cent short of the levels of £61 billion seen in 2008.

From 2008 to 2010 the Electricity, gas, steam and air conditioning supply (Section D) saw gradual increases in turnover, although aGVA decreased by 17 per cent (£4 billion) between 2009 and 2010. This aGVA decrease resulted from purchases increasing 13 per cent (£8 billion) due to significant increases in gas prices.

Table 2: Details of Income and Expenditure - Production Industries (Sections B-E) 2008-2010

Revised 2010 United Kingdom data

£ billion
        Standard Industrial Classification Revised 2007  
Year Total turnover Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
Section   
B-E - Production industries 2008 677 438 223
2009 611 394 196
2010 657 427 210
         
B - Mining and quarrying 2008 61 27 34
2009 46 22 24
2010 50 23 27
         
C - Manufacturing  2008 500 333 149
2009 450 294 131
2010 484 318 147
         
D - Electricity, gas, steam and 2008 87 64 24
air conditioning supply  2009 88 64 26
2010 94 72 22
         
E - Water supply, sewerage, 2008 29 14 15
waste management, and 2009 28 14 15
remediation activities 2010 29 14 15

Table source: Office for National Statistics

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Figure 3: Details of Income and Expenditure - Production Industries (Sections B-E) 2008-2010

Revised 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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Figure 4: Details of Total Turnover by SIC Section - Production Industries (Sections B-E) 2008-2010

Revised 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 (Section F)

For the whole of Construction (Section F) there has been year on year decreases in both turnover and purchases across the three year period, 2008 to 2010. The 2 per cent decrease in turnover and purchases (£3 billion and £2 billion respectively) between 2009 and 2010 was preceded by a sharper 17 per cent fall in turnover (£37 billion) and purchases (£24 billion) between 2008 and 2009.

This results in a minor fall in aGVA, of just 0.5 per cent (£0.3 million) from 2009 to 2010 as opposed to the 19 per cent (£16 billion) fall from 2008 to 2009.

This downturn in construction activity is driven by Construction of buildings (Division 41) and Civil engineering (Division 42).

For Construction of buildings (Division 41) turnover decreased for the second year running, though by a much smaller 6 per cent (£4 billion) from 2009 to 2010, compared to the previous 17 per cent (£15 billion) decrease from 2008 to 2009. This fall in turnover may be partly due to the restriction of credit and mortgages which require larger deposits resulting in fewer house sales. This is supported by a 6 per cent (£2 billion) rise in turnover from rental properties (SIC Class 68.20 in the Service sector).

Civil engineering (Division 42) also shows decreases in turnover and purchases across both periods. Turnover falls 11 per cent (£5 billion) from 2009 to 2010 and 13 per cent (£6 billion) from 2008 to 2009, while purchases decreased by 15 per cent (£4 billion) from 2009 to 2010 and 13 per cent (£4 billion) from 2008 to 2009.

However, the Specialist construction activities (Division 43), which comprises demolition, installation and preparation, shows growth in turnover by 8 per cent (£5 billion) and purchases by 10 per cent (£4 billion) from 2009 to 2010 resulting in a 6 per cent (£2 billion) increase in aGVA, with businesses reporting increases across the board. This improvement is far over-shadowed by the above fall in the other divisions of construction.

Table 3: Details of Income and Expenditure - Construction Industries (Section F) 2008-2010

Revised 2010 United Kingdom data

£ billion
  Standard Industrial Classification Revised 2007
Year Total turnover Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
Section/Division
F - Construction industries 2008 223 138 85
2009 186 114 69
2010 183 111 69
       
41 - Construction of buildings 2008 92 60 31
2009 76 48 25
2010 72 47 23
       
42 - Civil engineering  2008 48 33 15
2009 42 29 13
2010 37 24 13
       
43- Specialised construction 2008 84 45 39
activities 2009 68 37 31
2010 74 41 33

Table source: Office for National Statistics

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Figure 5: Details of Income and Expenditure - Construction Industries (Section F) 2008-2010

Revised 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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Figure 6: Details of Total Turnover by SIC Division - Construction Industries (Section F) 2008-2010

Revised 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 (Section F)

  1. Please note that the ABS annual figures for the Construction industries should not be compared directly with annual figures in the monthly 'Output in the Construction Industry' release 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 (Section G)

The Distribution industries, following a similar trend to Production, showed increases in turnover by 7 per cent (£77 billion) and purchases by 8 per cent (£78 billion) between 2009 and 2010, preceded by a 7 per cent drop in both turnover (£82 billion) and purchases (£77 billion), between 2008 and 2009. The 2010 growth in Distribution industries results in aGVA increasing by 3 per cent (£5 billion).

Distribution is composed of:

  • wholesale and retail trade and repair of motor vehicles and motorcycles (Division 45)

  • wholesale trade, except of motor vehicles and motorcycles (Division 46)

  • retail trade, except of motor vehicles and motorcycles (Division 47)

In Division 45 between 2009 and 2010 there has been a recovery within the Motor Trades sector, with an increase of 5 per cent (£6 billion) in both turnover and purchases. In addition aGVA increases by 21 per cent (£4 billion), helped by an improvement in the stocks of motor cars built up in 2010. From May 2009 to April 2010 the Government introduced a temporary car scrappage scheme which aided this industry. Under this scheme owners of cars at least 10 years old received £2,000 off the price of a new vehicle with half of the money being paid by the Government and half by the car maker when their old car was scrapped. This contrasts with the 7 per cent (£10 billion) decrease in turnover and 13 per cent (£3 billion) decrease in aGVA between 2008 and 2009.

In Division 46 turnover increased by 9 per cent (£59 billion) between 2009 and 2010, preceded by a 10 per cent (£80 billion) decrease from 2008 to 2009. The majority of the 2009 to 2010 divisional turnover increase is from Wholesale of solid, liquid and gaseous fuels (SIC Class 46.71) which increased by 11 per cent (£36 billion) and accounts for 61 per cent of the division's total increase. Rising fuel prices were a major contributing factor to this increase.

Another major turnover increase is in Wholesale of metal and metal ores (SIC Class 46.72). This industry increased by 60 per cent (£9 billion) in 2010 mainly due to the reclassification of a business that was previously classified to the production sector. Its move to wholesale was the result of a business restructure.

Over the last four years wholesale stock levels have been very volatile. In 2010 stocks showed an increased level at £2.8 billion. Businesses reported buying in large amounts of new stock as confidence in the economy improved. This is in contrast to 2009 when stock levels dropped dramatically by £729 million between 2008 and 2009.

Division 47 shows a 2 per cent (£2 billion) increase in aGVA from 2009 to 2010 preceded by a 7 per cent (£5 billion) increase from 2008 to 2009. This is in line with year on year increases shown in both turnover and purchases across the same period.

The 2009 to 2010 increase in aGVA is affected by unusually large increases in stocks, a major component to aGVA. The 169 per cent, (£1.3 billion) rise in stocks was most evident in Retail sale of other goods in specialised stores (SIC Group 47.7) which increased by £600m, and in Retail sale of other household equipment in specialised stores (SIC Group 47.5) which increased by £344m. This may reflect the economic climate with less stock being sold during 2010.

Table 4: Details of Income and Expenditure - Distribution Industries (Section G) 2008-2010

Revised 2010 United Kingdom data

£ billion
  Standard Industrial Classification Revised 2007
Year Total turnover Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
Section/Division
G - Wholesale and retail  2008 1,225 1,046 158
trade; repair of motor 2009 1,143 969 149
vehicles and motor cycles 2010 1,220 1,048 154
       
45 - Wholesale and retail  2008 136 115 21
trade and repair of motor 2009 126 105 18
vehicles and motorcycles 2010 132 111 22
         
46 - Wholesale trade, 2008 777 685 72
except of motor 2009 697 615 61
vehicles and motorcycles 2010 757 677 60
       
47 - Retail trade, except 2008 312 246 65
of motor vehicles 2009 319 249 70
and motorcycles 2010 331 260 72

Table source: Office for National Statistics

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Figure 7: Details of Income and Expenditure - Distribution Industries (Section G) 2008-2010

Revised 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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Figure 8: Details of Total Turnover by SIC Division - Distribution Industries (Section G) 2008-2010

Revised 2010 United Kingdom data

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

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Service industries (Sections H-S)

Between 2009 and 2010 nearly half of the £34 billion increase in aGVA for the whole economy measured by ABS is generated by the Service industries. Over this period both Service turnover and purchases increased by 4 per cent (£36 billion and £21 billion respectively) resulting in an aGVA increase of 3 per cent (£15 billion). This is in contrast to the 1 per cent decrease between 2008 and 2009 in turnover (£14 billion) and purchases (£7 billion), leading to a reduction in aGVA of 2 per cent (£8 billion).

The main drivers of the Service sector recovery between 2009 and 2010 are Administrative and support service activities (Section N) with turnover increasing 4 per cent (£6 billion) and aGVA up 8 per cent (£5 billion), Transport and storage (Section H) with turnover and aGVA both increasing by 6 per cent (£7 billion and £3 billion respectively), and Information and communication (Section J) with turnover increasing 5 per cent (£9 billion) and aGVA by 1 per cent (£1 billion).

The following industry sections are listed in the order of their impact on the Service sector movement between 2009 and 2010:

Administrative and support services activities (Section N)

The main drivers in the recovery in the Administrative and support activities (Section N) between 2009 and 2010 were Employment agencies (Division 78) and Travel agency and tour operators (Division 79).

Employment agencies (Division 78) saw increases of 16 per cent (£5 billion) in turnover and 15 per cent (£2 billion) in purchases, resulting in a 17 per cent (£3 billion) increase in aGVA. The increases are primarily in Temporary employment agencies (SIC Group 78.2), which after decreases in 2009, show considerable improvements in 2010. It is likely that increases in purchases are due to increased volumes of payments to temporary staff.

Travel agency, tour operator and other reservation service and related activities (Division 79) showed decreases of 2 per cent (£634 million) in turnover between 2008 and 2009 followed by another 2 per cent (£673 million) between 2009 and 2010. With purchases falling by a larger 4 per cent (£1 billion) in 2009 to 2010 there is a resulting rise in aGVA of 9 per cent (£394 million). This movement is primarily in Travel agency activities (SIC Class 79.11). Fluctuations in this division are likely to be due to changes in consumers behaviour due to the economic climate. 

Transportation and storage (Section H)

Within the Transportation and storage (Section H) there has been a noticeable improvement between 2009 and 2010, shown by a 6 per cent (£7 billion) increase in turnover and a 4 per cent (£3 billion) increase in purchases, leading to a 6 per cent (£3 billion) increase in aGVA. This is in sharp contrast to the situation from 2008 to 2009 where a 7 per cent (£10 billion) fall in turnover coupled with a 9 per cent (£7 billion) fall in purchases resulted in a 5 per cent (£3 billion) drop in aGVA. This 2009 to 2010 recovery was led by the following Divisions.

Land transport and transport via pipelines (Division 49) experienced a 5 per cent (£2 billion) increase in turnover, coupled with a 1 per cent (£303 million) reduction in purchases which resulted in a 9 per cent (£2 billion) increase in aGVA. The increase in turnover in Division 49 is due to the higher levels reported by businesses right across the industry. The disparity between the changes in turnover and purchases within Division 49 can be accounted for by businesses seeking to radically cut their operating costs and reduce their overheads.

Warehousing and support activities for transportation (Division 52) has also improved, with a 9 per cent (£4 billion) rise in turnover and a 14 per cent (£3 billion) rise in purchases leading to a 5 per cent (£1 billion) increase in aGVA. Reasons for the turnover rise are due to healthy increases reported by businesses in general. 

Information and communication (Section J)

Information and communication (Section J) is one of the major drivers to the Service sector recovery. Turnover increased by 5 per cent (£9 billion) between 2009 and 2010, compared to a 3 per cent (£5 billion) decrease between 2008 and 2009. This increase in turnover has led to a 1 per cent (£1 billion) rise in aGVA from 2009 to 2010, which is much improved upon the 2008 to 2009 decrease of 5 per cent (£4 billion).

Telecommunications (Division 61) and Computer programming, consultancy and related activities (Division 62) are responsible for the vast majority of the 2009 to 2010 turnover increase within Section J, with rises of 5 per cent (£3 billion) being shown in each of these Divisions between these years. Contributory factors were new technology developments and customer upgrades to smartphones combined with data packages. 

Professional, scientific and technical activities (Section M)

Professional, scientific & technical activities (Section M) is made up of a large number of various professions and industries which have reacted differently to the economic factors present in 2010. It is a key component of the Service sector as a whole making up 18 per cent of the turnover and 21 per cent of the aGVA.

One of the largest components of Section M is Legal and accounting services (Division 69) which contributed 24 per cent (£45 billion) of the Section M turnover in 2010. Division 69 turnover increased by 3 per cent (£1 billion) between 2009 and 2010, following a similar 2 per cent (£1 billion) increase between 2008 and 2009. Over the same period purchases only increased by £279 million between 2009 and 2010, and by £495 million between 2008 and 2009.

Another major component of Section M is Activities of head offices: management consultancy activities (Division 70) which accounts for about 24 per cent of the Section M total for turnover, purchases and aGVA in 2010. The small 1 per cent (£542 million) reduction in turnover between 2009 and 2010 was due to a variety of factors, including a fall in turnover reported by a major business within the industry.

A third major constituent of note in Section M is Architectural and engineering activities; technical testing and analysis (Division 71) which, again represents around 24 per cent of the Section M turnover, purchases and aGVA in 2010. This Division has suffered a year on year downturn since 2008; with turnover decreasing by 1 per cent (£638 million) between 2009 and 2010 and 2 per cent (£968 million) between 2008 and 2009. For 2009 to 2010, this downwards movement in turnover, combined with a 2 per cent (£327 million) increase in purchases, resulted in a 4 per cent (£1 billion) fall in aGVA. 

Education (Section P)

The upward trend for Education (Section P) over the three year period from 2008 to 2010 which was reported in the ABS 2010 Provisional Results has changed considerably for these Revised Results. Revised turnover is nearly 8 per cent (£2 billion) down on Provisional, purchases revised down by 18 per cent (£3 billion) and aGVA revised upwards by 6 per cent (£778 million).

Now, when comparing the 2009 revised data with the latest 2010 data, there is a 0.5 per cent (£171 million) fall in turnover and a 12 per cent (£2 billion) fall in purchases.

One of the main reasons for this 2009 to 2010 decrease was due to changes within Technical and vocational secondary education (SIC Class 85.32), a component of Section P. This involved an alteration to the way Further Education Colleges are treated, moving them from a 'Non Profit Institutions Serving Households' category (selected by the ABS), to 'Central Government', which ABS does not sample. This resulted in a considerable removal of data for this Class between 2009 and 2010 with turnover showing a 51 per cent (£1 billion) decrease and purchases an 81 per cent (£2 billion) reduction.

Note: For Education (Section P), the ABS excludes state education and only covers the private provision of education. 

Human health and social work activities (Section Q)

Throughout Human health and social work activities (Section Q), there have been year on year increases in both turnover and purchases across the three year period spanning 2008 to 2010. From 2009 to 2010 turnover increased by 6 per cent (£2 billion), whereas purchases experienced a larger percentage rise of 16 per cent (also £2 billion). This compares with a 2008 to 2009 turnover increase of 10 per cent (almost £3 billion) and a purchases increase also of 10 per cent (£1 billion).

For Section Q this has resulted in a minimal rise in aGVA of just 0.5 per cent (£0.1 billion) between 2009 and 2010, compared to a 10 per cent (£2 billion) increase between 2008 and 2009.

Social work activities without accommodation (Division 88) has made the most significant contribution to the turnover increase in Section Q, between 2009 and 2010 with a rise of 13 per cent (£1.3 billion). Within Division 88, Other social work activities without accommodation (SIC Class 88.99) has experienced the largest increase in turnover of 22 per cent (£1 billion) due to a large increase being reported by a major business within the industry.

Residential care activities (Division 87) has the largest share of Section Q's turnover data, with 42 per cent (£17 billion) in 2010 and 43 per cent (£16 billion) in 2009. Division 87 includes the provision of residential care combined with either nursing, supervisory or other types of care as required by the residents. With the growing number of elderly people in the UK, Division 87 has seen continued growth levels. Between 2008 and 2009, turnover rose by 10 per cent (£2 billion), purchases by 8 per cent (£354million) and aGVA improved by 11 per cent (£1 billion). For 2009 to 2010 turnover increased by a smaller 4 per cent (£665 million), purchases by 9 per cent (£424 million), resulting in aGVA rising only 2 per cent (£281 million).

Note: For Human health and social work activities (Section Q), the ABS excludes public health provision by the National Health Service (NHS) and only covers private health provision. 

Arts, entertainment and recreation (Section R)

Arts, entertainment and recreation (Section R) in the past few years, in terms of turnover, has remained buoyant across the period 2008 to 2010, despite the economic problems being experienced in the UK. However, due to higher purchasing costs the aGVA has fallen quite substantially, experiencing a 12 per cent (£2 billion) decrease between 2009 and 2010. Driving these trends are Divisions 92 and 93.

Gambling and betting activities (Division 92) makes up nearly three quarters of Section R in terms of turnover, with the 2010 turnover figure of £67 billion. A similar situation exists for purchases where the 2010 purchases figure of £60 billion forms 83 per cent of the Section total. The businesses within this division continued to do well in 2010 and reported large increases in both turnover and purchases. However, the 5 per cent (£3 billion) increase in purchases has outstripped the 4 per cent (£2 billion) rise in turnover, thereby causing the aGVA to fall by 14 per cent (£660 million) between 2009 and 2010.

Sports activities (Division 93) including amusement and recreation shows a decrease of 4 per cent (£572 million) in turnover and a 6 per cent (£452 million) increase in purchases. This results in aGVA decreasing by 13 per cent (£1 billion). A primary driver of the turnover decrease are Sports clubs (SIC Class 93.12) where turnover decreased by 12 per cent (£1 billion). This decrease was across the board and was likely due to reduced household disposable income and sponsorship due to the economic climate. However, these decreases were lessened by increases in Other sports activities (SIC Class 93.19).

Table 5: Details of Income and Expenditure - Service Industries (Sections H-S) 2008-2010

Revised 2010 United Kingdom data

£ billion
  Standard Industrial Classification Revised 2007
Year Total turnover Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
Section 
H-S - Service industries 2008 1,038 544 497
2009 1,025 537 489
2010 1,061 558 504
       
H - Transport and Storage  2008 137 80 60
2009 127 73 57
2010 134 76 60
       
I - Accommodation and food 2008 68 36 32
service activities 2009 66 37 29
2010 68 37 31
       
J - Information and 2008 180 94 88
communication 2009 175 93 83
2010 184 100 85
       
K (part) - Insurance and 2008 93 39 54
reinsurance 2009 99 42 57
2010 102 45 57
       
L - Real estate activities  2008 42 17 26
2009 42 17 26
2010 45 17 28
       
M - Professional, scientific 2008 191 85 106
and technical 2009 188 83 105
activities 2010 191 86 105
         
N - Administrative and 2008 150 80 70
support service  2009 144 78 66
activities 2010 150 78 72
       
P (part) - Education  2008 26 16 10
2009 29 17 11
2010 28 15 13
         
Q (part) - Human health  2008 34 12 22
and social work activities  2009 38 13 24
2010 40 15 24
         
R - Arts, entertainment and 2008 88 70 16
recreation 2009 89 69 17
2010 90 73 15
       
S - Other service activities  2008 30 16 14
2009 29 15 14
2010 30 16 14

Table source: Office for National Statistics

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Figure 9: Details of Income and Expenditure - Service Industries (Sections H-S) 2008-2010

Revised 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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Figure 10: Details of Total Turnover by SIC Section - Service Industries (Sections H-S) 2008-2010

Revised 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
  2. I - Accommodation and food service activities
  3. J - Information and communication
  4. K (part) - Insurance, reinsurance
  5. L - Real estate activities
  6. M - Professional, scientific and technical activities
  7. N - Administrative and support service activities
  8. P (part) - Education
  9. Q (part) - Human health and social work activities
  10. R - Arts, entertainment and recreation
  11. S - Other service activities

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Background notes

  1. ABS Survey

    The Annual Business Survey (ABS), formerly the Annual Business Inquiry part 2 (ABI/2), is the Office for National Statistics (ONS) financial information and structural business survey covering approximately two-thirds of the UK economy. Further details on the sectors covered are given in background note 3.

    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 Government in the compilation of both regional and country specific Input/Output tables and Indices of Production.

    Visit ABS webpages for more in-depth information about the ABS, plus the latest news on survey changes and developments.

  2. 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 (aGVA). 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 Input-Output based estimates of GVA at basic prices that are 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.

  3. ABS 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 SIC 01.6 only),hunting, forestry and fishing - Section A

    • Production industries - Sections B-E

    • Construction industries - Section F

    • Distribution industries - Section G

    • Service industries - Sections H, I, J, K (SIC 65.1 and 65.2 only), L, M, N, P (private provision only), Q (private provision only in SIC 86.1 and 86.9), R and S

    The main industries excluded are:

    • Agriculture (SIC 01.1, 01.2, 01.3, 01.4 and 01.5 in Section A)

    • Financial intermediation (SIC 64, 65.3, 66 in Section K)

    • Public administration and defence (Section O)

    • Education (public provision in Section P)

    • Health (SIC 86.2, public provision in SIC 86.1 and 86.9 in Section Q)

  4. Disclosure control and symbols

    ABS data are suppressed where there is a risk of disclosing information about an individual business, further information on why data are suppressed is available in the ONS Disclosure Control Policy.

    The following symbols are used throughout the ABS releases:

    *  information suppressed to avoid disclosure

    ..  not available

    -  nil or less than half the level of rounding

  5. ABS Quality Measures

    The ABS is a stratified random sample, using SIC(2007), employment and country as stratifying variables. As in all samples the estimates from the survey are subject to various sources of error. The total error in a survey estimate is the difference between the estimate derived from the data collected and the true (unknown) value for the population. The total error consists of two main elements; the sampling error and the non-sampling error. The ABS was designed to minimise both these errors.

    Sampling error

    The sampling error is the error that arises because the estimate is based on a survey rather than a census of the population. The results obtained for any single sample may, by chance, vary from the true values for the population but the variation would be expected to average to zero over a number of repeats of the survey.

    • The standard error is the estimated value of the sampling error. Our estimate for a variable, plus and minus the standard error for the variable, gives a range in which the true unknown value for the population should lie. The closer the standard error to 0, the more reliable the estimate.
    • The coefficient of variation is the standard error of a variable divided by the survey estimate, and it is used to compare the relative precision across surveys or variables. The closer the coefficient of variation is to 0, the more reliable the estimate.

    Sampling errors (652.5 Kb Excel sheet) for the ABS are available down to 4 digit SIC(2007) class level for the following variables:

    • Total Turnover
    • Approximate Gross Value Added at Basic Prices
    • Total Purchases of Goods and Services
    • Total Net Capital Expenditure

    Non-sampling error

    Non-sampling errors are not easy to quantify but can be caused by coverage, measurement, processing and non-response. The response rate gives an indication of the likely impact of non-response error on the survey estimates.

  6. ABS Quinquennial review and Quality Methodology Information

    A Quinquennial Review (170.4 Kb Pdf) and Quality and Methodology Information (149.3 Kb Pdf)  for the ABS are also available and describe, in detail, the intended uses of the statistics presented in ABS publications, their general quality and the methods used to produce them.

  7. ABS Revisions

    Annual Business Survey statistics are revised in line with the 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:

    • Figures for the current survey year will usually be revised between the provisional and revised national releases. For example between the provisional and revised 2010 releases there has been an overall change in Whole Economy turnover by 0.3 per cent (£8 billion).

    • 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:

    • the need to make the information available to users as soon as practicable

    and

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

    The ABS 2010 Revisions (54 Kb Excel sheet) table shows the revisions to ABS data between the publication of the provisional 2010 release on 17 November 2011 and the revised 2010 release on 14 June 2012.

  8. ABS Updates

    Further releases of ABS data will be:

    • 26 July 2012 - Provisional Regional Results for ABS 2010

    • 15 November 2012 - Provisional national Results for ABS 2011

  9. ABS User engagement

    The Annual Business Survey (ABS) team would like to improve the way that we engage with you, the users of our data. We want to:

    • make it easier for you to comment, question, and offer feedback on ABS and its planned developments, so that improvements to our outputs and services can be prioritised in response to user suggestions

    • create a forum for users to share information and experience with each other

    • keep you up-to-date with planned developments

    • showcase the wide range of uses for ABS data by publishing a series of regular analyses

    With this in mind, we have set up a new Business Statistics Community on the Business Statistics Community forum. StatsUserNet is the Royal Statistical Society’s new interactive site for users of official statistics. It enables you to join online communities for your areas of interest, and even create your own.

  10. Follow ONS

    Follow ONS on Twitter and Facebook.

  11. 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
Pete Pring +44 (0)1633 456338 Office for National Statistics pete.pring@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
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