This article provides detailed product-by-industry proportion estimates using Annual Survey of Goods and Services (ASGS) data for the first time.
The majority of turnover generated by the UK service economy came from businesses in the wholesale and retail trade industrial section (45.3%).
The gambling and betting industrial division was the least diverse, with most of the products provided being from the gambling and betting industry itself (96.2%).
20.0% of all service industry turnover was generated by businesses providing products outside their main industrial classification.
The primary aim of the Annual Survey of Goods and Services (ASGS) is to provide a comprehensive picture of the services provided by the UK service economy. This level of detail is required to feed into the supply and use tables (SUTs) and ultimately the compilation of gross domestic product (GDP). The data collected will also feed into the Services Producer Price Index (SPPI); an important measure of inflation used by the Bank of England during their monetary policy-making process.
The ASGS will help Office for National Statistics (ONS) to meet a main recommendation from Professor Sir Charles Bean’s review of economic statistics. Specifically, the ASGS collects businesses’ turnover, broken down into the goods and services that a business provides.
This publication follows on from the Development of the Annual Survey of Goods and Services, which is a detailed methods article outlining how the statistics were produced.
This publication will highlight the estimates produced from the ASGS 2016, released for the first time. This will include high-level product by industry group turnover estimates (15 product groups by 14 industry groups). A breakdown at the more detailed product and industry level is also provided. This more detailed level is consistent in structure, but not concept, with the combined use matrix within the SUT publication, although it does not map exactly as the ASGS only covers the services industries.
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At present, the estimates produced from the Annual Survey of Goods and Services are still regarded as preliminary as the survey is still in development. This will be the case until we go through a formal assessment with the UK Statistics Authority to ensure compliance with the Code of Practice for Statistics. We will make further improvements to the survey, for example, to the questionnaire design, which is currently being reviewed. Data from further survey periods will be also be processed and validated.
The estimates provided are for the 2016 calendar year. Their primary purpose is to measure product- level information from businesses classified to the service economy, to estimate the proportion of turnover generated for each product.
ASGS measures the turnover generated by the service industries, whereas national accounts, and supply and use tables measure output. Output is defined as the total of products created during the accounting period (European System of Accounts 2010 (PDF, 6.4MB) , page 55). We plan to use the estimated proportions from the ASGS to inform the distribution of output to products within the supply and use tables from UK National Accounts, The Blue Book 2019 onwards. This is currently done based on estimates from the International Trade in Services (ITIS) survey along with administrative sources.
The main source for the total value of output used within SUT is from the well-established Annual Business Survey (ABS). As the breakdown of products provided within the industry is required from the ASGS estimates, they will be constrained to the ABS industry totals. As a result, it is appropriate to present the ASGS data product proportions within the industries. There are additional sources included within the full supply and use tables, such as public sector data and financial corporations together with balancing adjustments so estimates will differ.
The ASGS covers a large element of the service economy, with some exceptions such as public administration and certain elements of the financial sector. The exact inclusions and exclusions of industries are detailed in Annex B and based on the Standard Industrial Classification: UK SIC 2007; Annex A , which is used to classify business establishments by their economic activity.
The ASGS collects turnover data at the Statistical Classification of Products by Activity (CPA code) three-digit (for wholesale trade, except of motor vehicles and motorcycles), five-digit (for retail trade, except of motor vehicles and motorcycles and waste collection, treatment and disposal activities; materials recovery) or six-digit level (for all remaining industries). The CPA is the classification of products at the level of the European Union (EU) and is designed to categorise products that have common characteristics. They provide the basis for collecting and calculating statistics on such products. The CPA is consistent with SIC at four-digit level and provides further detail at five- and six-digit level.
The ASGS has a sample size of approximately 40,000.
An overall response rate of 78.1% was achieved for the 2016 ASGS. The response for each UK country was:
England – 78.6%
Scotland – 74.5%
Northern Ireland – 71.7%
Wales – 77.5%
Results from the Annual Survey of Goods and Services 2016 have been aggregated to a broad industry section level using Standard Industrial Classification: UK SIC 2007. Using these values, the proportion of industry section total turnover within the total turnover value across all industries has been calculated.
Figure 1 shows that the majority of turnover generated by the UK service economy in 2016 came from businesses in the wholesale and retail trade industrial section (45.3%). This was followed by businesses in the professional, scientific and technical industry section (9.8%) and the financial and insurance industrial section (8.9%).
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Results from the Annual Survey of Goods and Services 2016 have been aggregated to a broad industry and product section level. Using these values, the proportion of each product group within the total value for the industry has been calculated. The sum of the product proportions will sum to 100 within each industrial sector. These proportions are detailed within Figures 3 and 4.
The analysis of this data will refer to both on-diagonal and off-diagonal. On-diagonal turnover means businesses classified to an industry, providing a product mapped to the same industry. Industry classifications are determined using Standard Industrial Classification: SIC and products are classified using Classification of Products by Activity: CPA. An example of on-diagonal turnover within sections is a business in the accommodation industry (industry 55) providing food and beverage-serving services (CPA 56); both industry and product are within the accommodation and food service activities section.
On the other hand, an example of off-diagonal turnover within sections are businesses in education (industry 85) providing a service product belonging to accommodation services (CPA 55); the industry is in the education section while the products provided are within the accommodation and food service activities section.
Figure 2 demonstrates the concept of on-diagonal and off-diagonal turnover.
Looking across the 14 industrial sections, the majority of turnover was generated by providing services within the same industrial section (on-diagonal). The highest proportion of on-diagonal turnover came from the financial and insurance activities section, with 95.4% of its turnover being generated from finance and insurance services. This was followed by the electricity, gas, steam and air conditioning supply section, with 89.6% of turnover being generated from electricity, gas, steam and air conditioning supply services.
Notably, other service activities had the largest percentage of off-diagonal turnover with 67.6% of turnover being generated from activities outside the section.
Figure 4 shows in greater detail the spread of turnover across the sections. It shows the percentage of total turnover on products within a section. The darker the colour, the higher the percentage.
Note: there is not a Production industry group, because only businesses classified to services industries were sampled. Therefore, only production carried out by the services industries was measured.
Of turnover generated by the other service activities section, 39.5% was generated by providing professional, scientific and technical services, a greater proportion than by providing on-diagonal services (32.4%). The other services section includes a broad range of industries:
activities of membership organisations
repair of computers and personal and household goods
other personal service activities
The broad range of industries classified within the other service activities section may explain why there is a greater level of diversity in the products provided. Further analysis is being undertaken to understand why this is the case.Back to table of contents
The Annual Survey of Goods and Services (ASGS) collects information at a much more detailed level than data shown in Figure 4. One requirement for the ASGS is to replicate the “combined use” matrix used in the supply and use tables (SUTs) (excluding certain industries detailed in previous sections). The size of the table is 53 industries by 58 products. This is smaller than the 114 by 114 SUTs, because the ASGS only samples the services industries, whereas SUTs measure the whole economy, including the production industries. Due to the size of the table, it is not possible to show it in its entirety in the article, but it can be found in a supplementary dataset accompanying this release.
The following section will detail the turnover trends of the UK service economy, based on the main findings from the detailed table. In particular, the spread of data, the top 15 products across all sections and a focus on specific industries.
Spread of data
To look more in-depth at the data, the concept of on-diagonal and off-diagonal turnover is considered within two-digit industrial divisions. This is slightly different to the approach of on-diagonal and off-diagonal turnover at industrial section level mentioned in Section 5.
In this context, on-diagonal turnover refers to businesses providing a service product mapped to the industry based on both the Standard Industrial Classification: SIC and Classification of Products by Activity: CPA at a two-digit industrial division level. Off-diagonal turnover refers to businesses providing a product not directly mapped to their industry at a two-digit industrial division level.
An example of on-diagonal turnover is where a business in the accommodation industry (industry 55) provides a service product within accommodation services (CPA 55). An example of off-diagonal turnover is where a business in the accommodation industry (industry 55) provides food and beverage serving services (CPA 56). Although both industry and product are within the accommodation and food service activities section, they are not in the same industry at the two-digit level.
Overall, 20.0% of all services industries turnover was off-diagonal at the two-digit level.
Industry with the most off-diagonal
The industry with the most off-diagonal turnover was the other personal services industry, with 74.6% of turnover generated by providing products outside the industry (Figure 5). This industry includes businesses classified to washing and dry cleaning, hairdressing and other beauty treatments, funeral activities and physical well-being activities.
Figure 6 shows the top ranked products provided by this industry. Of the off-diagonal turnover, 41.7% was generated by providing products in the activities of head offices and management consultancy activities industry. This is the only industry where the top-ranked product was off-diagonal, with the on-diagonal product the next largest at 25.4%. In contrast, in all remaining industries the top-ranked product provided was the on-diagonal product.
One reason for a large amount of off-diagonal turnover in this industry is the potential for industrial misclassification. This is where a business may have been assigned an industrial classification that does not accurately represent their business activity. Whilst business classifications are constantly under review, the ASGS is an additional important source of data for ensuring that businesses are classified as accurately as possible.
Industries with the most on-diagonal
The least diverse industry was the Gambling and betting industry, with 96.2% of all turnover generated from the provision of gambling and betting services. The next least diverse industry was the Air Transport industry, with 96.1% of all turnover generated from the provision of air transport services. These are both tightly regulated industries so a high level of on-diagonal turnover is expected.
Top 15 services
The ASGS collects a detailed breakdown of the different services provided by the UK services industries. Table 1 shows the top 15 services provided, as a proportion of all turnover generated. Production data are also collected, but at present this is not broken down into the individual goods produced, therefore are not included in Table 1. Of all turnover generated by the UK service economy, 6.7% was generated by producing goods1. Production data for all industries are available in the data accompanying this release.
Table 1: Top 15 services provided by the UK service economy, as a proportion of total turnover
|Product Group||Percentage of total service industry turnover (%)|
|46||Wholesale trade services, except of motor vehicles and motorcycles||21.1|
|47||Retail trade services, except of motor vehicles and motorcycles||13.5|
|45||Wholesale and retail trade and repair services of motor vehicles and motorcycles||6.9|
|64||Financial services, except insurance and pension funding||5.6|
|70||Services of head offices; management consulting services||3.4|
|35.1||Electricity, transmission and distribution||3.0|
|56||Food and beverage serving services||2.7|
|62||Computer programming, consultancy and related services||2.5|
|65.1-2||Insurance, reinsurance and pension funding services, except compulsory social security||2.5|
|49.3-5||Land transport services and transport services via pipelines, excluding rail transport||1.8|
|52||Warehousing and support services for transportation||1.6|
|77||Rental and leasing services||1.4|
|71||Architectural and engineering services; technical testing and analysis services||1.3|
|79||Travel agency, tour operator and other reservation services and related services||1.3|
|Source: Annual Survey of Goods and Services, 2016, Office for National Statistics|
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The top three services provided were wholesale and retail trade products, which represented 41.5% of all turnover generated by the services industries. However, of all turnover generated by providing retail and wholesale trade, 95.4% was generated by the retail and wholesale trade industries themselves.
The ASGS also collects a breakdown of services provided to customers located inside the UK and exported to customers outside the UK. Quality assurance of this data is currently ongoing and is planned to be published later in the year.
Focus on specific industries
This section focuses on some specific industries to highlight the diversity of their product patterns.
Retail trade, except of motor vehicles and motorcycles
The majority of turnover generated by the retail trade, except of motor vehicles and motorcycles industry was generated by providing on-diagonal products (79.8%), see Figure 7. However, other products were also provided, with the next-largest products provided being production (15.9%), land transport services and transport services via pipelines, excluding rail transport (1.6%) and wholesale trade (0.7%).
In addition, businesses in the retail industry also generated turnover from a number of other diverse service products summing to 1.6% (see the detailed matrix accompanying this release for further details). This would suggest that whilst the majority of turnover in the retail trade industry was generated from the retail trade of products, businesses in this industry also generate a proportion of turnover from manufacturing their own products before selling them.
Repair of computers and personal and household goods
The majority of turnover generated by the repair of computers and personal and household goods industry came from on-diagonal products (44.0%), see Figure 8. However, a breadth of other products were also provided, with the next-largest products provided being wholesale trade services (20.2%) and production (12.1%). This would suggest that businesses classified to this industry are diversifying, manufacturing and selling products as well as repairing them. In addition, 7.8% of turnover was generated by providing computer programming and consultancy.
Notes for: Detailed product proportions by industry
- Goods are classified as products appearing in sections A, B, C and F in the CPA classification.
A number of actions are planned to develop the survey as part of our continuous development and improvement approach. The main next steps are detailed in this section with indicative timescales. Note that this could be subject to change.
Data for the 2017 Annual Survey of Goods and Services (ASGS) are currently being collected and will then be used to retrospectively quality-assure the 2016 ASGS data, with the current plan to publish the 2017 data in summer 2019.
A detailed Quality and Methodology Information (QMI) report will be produced (as is done for other Office for National Statistics surveys) detailing the methodology and associated metadata. As part of all this work, we will be working towards achieving National Statistics status and more information on this will be made available when appropriate.
The ASGS data is being considered for use in Blue Book 2019 to help inform the product distributions in the supply use tables.Further details of plans for Blue Book 2019 will be disseminated through the usual national accounts updates.
The electronic questionnaire was improved for the ASGS 2017 to make it more user-friendly for respondents and to further improve question wording, particularly around the definition of goods and services. This has continued to ensure the collection of high-quality data whilst minimising respondent burden. Further changes will be made to the ASGS 2018 following additional user testing and cognitive testing, which will be undertaken in early 2019.
The 2019 survey will be dispatched to businesses in June 2019 with estimates likely to be available towards the end of the same calendar year.
For more detail on how the questionnaire has been developed, see the Development of the Annual Survey of Goods and Services article.
We are keen to get your views on the methods, data and work to date to help inform and make improvements to the ASGS. If you have any comments, please email us at ASGS@ons.gov.uk.
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Table 2: Classification of Products by Activity (CPA) and Standard Industrial Classification (SIC) 2007
|CPA/SIC Code||Product/Industry Group||Description|
|1||Production||Crop and animal production, hunting and related service activities|
|2||Production||Forestry and logging|
|3||Production||Fishing and aquaculture|
|5||Production||Mining of coal and lignite|
|6||Production||Extraction of crude petroleum and natural gas|
|7||Production||Mining of metal ores|
|8||Production||Other mining and quarrying|
|9||Production||Mining support service activities|
|10.1||Production||Mining support service activities|
|10.2 to 3||Production||Processing and preserving of fish, crustaceans, molluscs, fruit and vegetables|
|10.4||Production||Vegetable and animal oils and fats|
|10.6||Production||Grain mill products, starches and starch products|
|10.7||Production||Bakery and farinaceous products|
|10.8||Production||Other food products|
|10.9||Production||Prepared animal feeds|
|11.01 to 6||Production||Alcoholic beverages|
|11.07||Production||Soft drinks; production of mineral waters and other bottled waters|
|15||Production||Leather and related products|
|16||Production||Wood and products of wood and cork, except furniture; articles of straw and plaiting materials|
|17||Production||Paper and paper products|
|18||Production||Printing and reproduction of recorded media|
|19||Production||Coke and refined petroleum products|
|20.3||Production||Paints, varnishes and similar coatings, printing ink and mastics|
|20.4||Production||Soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations|
|20.5||Production||Other chemical products|
|20A||Production||Industrial gases, inorganics and fertilisers (all inorganic chemicals)- 20.11. 20.13 and 20.15|
|20B||Production||Petrochemicals - 20.14, 20.16, 20.17 and 20.60|
|20C||Production||Dyestuffs, agro to chemicals- 20.12 and 20.20|
|21||Production||Basic pharmaceutical products and pharmaceutical preparations|
|22||Production||Rubber and plastic products|
|23.5 to 6||Production||Cement, lime, plaster and articles of concrete, cement and plaster|
|23 OTHER||Production||Glass, refractory, clay, porcelain, ceramic, stone products - 23.1 to 23.4 and 23.7 to 23.9|
|24.1 to 3||Production||Basic iron and steel|
|24.4 to 5||Production||Other basic metals and casting|
|25.4||Production||Weapons and ammunition|
|25 OTHER||Production||Fabricated metal products, excluding weapons and ammunition- 25.1 to 25.3 and 25.5 to 25.9|
|26||Production||Computer, electronic and optical products|
|28||Production||Machinery and equipment n.e.c.|
|29||Production||Motor vehicles, trailers and semi to trailers|
|30.1||Production||Building of ships and boats|
|30.3||Production||Air and spacecraft and related machinery|
|30 OTHER||Production||Other transport equipment to 30.2/4/9|
|33.15||Production||Repair and maintenance of ships and boats|
|33.16||Production||Repair and maintenance of aircraft and spacecraft|
|33 OTHER||Production||Rest of repair; installation - 30.2, 30.4 and 30.9|
|35.1||Electricity, gas, steam and air conditioning supply||Electric power generation, transmission and distribution|
|35.2 to 3||Electricity, gas, steam and air conditioning supply||Gas; distribution of gaseous fuels through mains; steam and air conditioning supply|
|36||Water supply; sewerage, waste management and remediation activities||Water collection, treatment and supply|
|37||Water supply; sewerage, waste management and remediation activities||Sewerage|
|38||Water supply; sewerage, waste management and remediation activities||Waste collection, treatment and disposal activities; materials recovery|
|39||Water supply; sewerage, waste management and remediation activities||Remediation activities and other waste management services|
|41||Production||Construction of buildings|
|43||Production||Specialised construction activities|
|45||Wholesale and retail trade; repair of motor vehicles and motorcycles||Wholesale and retail trade and repair of motor vehicles and motorcycles|
|46||Wholesale and retail trade; repair of motor vehicles and motorcycles||Wholesale trade, except of motor vehicles and motorcycles|
|47||Wholesale and retail trade; repair of motor vehicles and motorcycles||Retail trade, except of motor vehicles and motorcycles|
|49.1 to 2||Transportation and storage||Rail transport|
|49.3 to 5||Transportation and storage||Land transport services and transport services via pipelines, excluding rail transport|
|50||Transportation and storage||Water transport|
|51||Transportation and storage||Air transport|
|52||Transportation and storage||Warehousing and support activities for transportation|
|53||Transportation and storage||Postal and courier activities|
|55||Accommodation and food service activities||Accommodation|
|56||Accommodation and food service activities||Food and beverage service activities|
|58||Information and communication||Publishing activities|
|59||Information and communication||Motion picture, video and TV programme production, sound recording and music publishing activities|
|60||Information and communication||Programming and broadcasting activities|
|61||Information and communication||Telecommunications|
|62||Information and communication||Computer programming, consultancy and related activities|
|63||Information and communication||Information service activities|
|64||Finance and insurance||Financial service activities, except insurance and pension funding|
|65.1 to 2||Finance and insurance||Insurance and reinsurance, except compulsory social security|
|65.3||Finance and insurance||Pension funding|
|66||Finance and insurance||Activities auxiliary to financial services and insurance activities|
|68.1 to 2||Real estate||Buying and selling, renting and operating of own or leased real estate, excluding imputed rental|
|68.3||Real estate||Real estate services on a fee or contract basis|
|69.1||Professional, scientific and technical activities||Legal activities|
|69.2||Professional, scientific and technical activities||Accounting, bookkeeping and auditing activities; tax consultancy|
|70||Professional, scientific and technical activities||Activities of head offices; management consultancy activities|
|71||Professional, scientific and technical activities||Architectural and engineering activities; technical testing and analysis|
|72||Professional, scientific and technical activities||Scientific research and development|
|73||Professional, scientific and technical activities||Advertising and market research|
|74||Professional, scientific and technical activities||Other professional, scientific and technical activities|
|75||Professional, scientific and technical activities||Veterinary activities|
|77||Administrative and support service activities||Rental and leasing activities|
|78||Administrative and support service activities||Employment activities|
|79||Administrative and support service activities||Travel agency, tour operator and other reservation service and related activities|
|80||Administrative and support service activities||Security and investigation activities|
|81||Administrative and support service activities||Services to buildings and landscape activities|
|82||Administrative and support service activities||Office administrative, office support and other business support activities|
|86||Human health and social work activities||Human health activities|
|87||Human health and social work activities||Residential care activities|
|88||Human health and social work activities||Social work activities without accommodation|
|90||Arts, entertainment and recreation||Creative, arts and entertainment activities|
|91||Arts, entertainment and recreation||Libraries, archives, museums and other cultural activities|
|92||Arts, entertainment and recreation||Gambling and betting activities|
|93||Arts, entertainment and recreation||Sports activities and amusement and recreation activities|
|94||Other services||Activities of membership organisations|
|95||Other services||Repair of computers and personal and household goods|
|96||Other services||Other personal service activities|
|Source: Standard Industrial Classification 2007 (SIC 2007) and Classification of Products by Activity (CPA)|
|1. For the purposes of this bulletin, production is defined as sections A, B, C and F from SIC2007|
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The list in this section provides details of the services industries included and excluded from the Annual Survey of Goods and Services (ASGS). Inclusions:
Electricity, gas, steam and air conditioning supply (section D)
Water supply; sewerage, waste management and remediation activities (section E)
Wholesale and retail trade; repair of motor vehicles and motor cycles (section G)
Transportation and storage (section H)
Accommodation and food service activities (section I)
Information and communication (section J)
Financial and insurance activities (section K) (64.3, 64.9, 65.1, 65.2, 65.3)
Real estate activities (section L)
Professional, scientific and technical activities (section M)
Administrative and support service activities (section N)
Education (section P)
Human health and social work activities (section Q)
Arts, entertainment and recreation (section R)
Other service activities (section S)
Financial and insurance activities (section K) (64.1, 64.2, 66.1, 66.2, 66.3)
Public administration and defence; compulsory social security (section O)
Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use (section T) Activities of extraterritorial organisations and bodies (section U)
Authors: Chloe Gibbs and Georgina Thompson
The authors would like to acknowledge contributions from IFF Research, Lucas Michaelides, Katie Evans, Leela Luke, Teresa Bainton, Craig McLaren, Rob Doody and Jayne Olney.Back to table of contents
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