Service industries - Commons Library Standard Note

Published 29 December 2014 | Standard notes SN02786

Authors: David Hough

Topic: Economic situation, Service industries

The Markit/CIPS UK Services PMI (an important indicator of confidence in the sector) rose in November to 58.6 (where a score above 50 indicates confidence is expanding). The November score pointed to a marked and accelerated rate of expansion that was well above the survey’s historical average.

Output in the service sector grew by 0.3% in October compared to September 2014. Compared with a year before, services output increased by 3.4%. The largest contributions came from: business services & finance, which contributed 1.6 percentage points to total growth; and distribution, hotels & restaurants, which contributed 0.9 percentage points to total growth.

In Q3 2014 there were 27.9 million jobs in the service sector, 83% of all jobs in the UK. The number of jobs in the service industries increased by 89,000 over the quarter and by 1031,000 over the year.

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