annual business inquiry 2009

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Annual Business Inquiry2008 provisional resultsDate: 17 November 2009 Coverage: United Kingdom Theme: The Economy

Provisional results from the 2008 Annual Business Inquiry (ABI) for the United Kingdom are now

available. This is the first set of ABI results to be published under Standard Industrial Classification

(SIC) 2007. The change of SIC has made it difficult to compare 2008 figures with the previous

year. The notes in this Bulletin provide further information.

The four main industry groups showed increases in turnover and purchases between 2007 and

2008 while, for gross value added, distribution showed the only decrease.

2007

£ billion

2008

£ billion

Per cent

change

Production industries (note 4)

Turnover 625 679 8.7

Purchases 399 440 10.3

Approximate GVA at basic prices (note 5) 209 223 6.6

Construction industries (note 4)



Approximate GVA at basic prices (note 5) 82 91 11.6

Distribution industries (note 4)

Turnover 1,053 1,231 16.9

Purchases 882 1,057 19.8

Approximate GVA at basic prices (note 5) 159 158 -1.0

Service industries (note 4)



Approximate GVA at basic prices

(note 5)

399 421 5.5



Statistical Bulletin: Annual Business Inquiry 2008 Provisional |

ABI: Implications of moving to a new classification system

This Statistical Bulletin covers information collected as part of the ABI. This inquiry replaced the

various annual inquiries sent to businesses for 1997 and earlier. The main survey for reference

year 2007 was on a SIC 2003 basis. Reference year 2008 moved to SIC 2007, to meet EU

regulatory requirements. Estimates for 2007 have been produced on a SIC 2007 basis and are

included to give a broad indication of movements. Caution should be exercised when comparing

these transitional years.

The 2007 estimates for Section A, Agriculture, hunting, forestry and fishing presented difficulties,

associated with the move to the new SIC, and have been excluded.

In line with previous publications, a gross value added estimate is not published for Real estate

activities, Section L, as it is not considered an appropriate measure for this sector.

The 2008 increases in Section Q, Human health and social work activities are mostly due to the

exclusion of charities and non-profit organisations in 2007 while, for 2008, the change of SIC made

it difficult separately to identify this activity and it is included.

Production industries

Turnover of the mining and quarrying industries (which includes oil and gas extraction) increased

by 30.3 per cent and gross value added by 55.4 per cent. In the electricity, gas, steam and air

conditioning supply industry turnover increased by 21.4 per cent and purchases by 29.5 per cent.

The increase in both sectors was influenced by the rise in oil prices between 2007 and 2008.

Manufacturing showed an increase in turnover of 4.1 per cent, but a larger increase in purchases

of 7.2 per cent resulted in gross value decreasing by 2.3 per cent.

Construction industries

In the construction industries, turnover increased by 8.4 per cent, purchases by 6.0 per cent and

gross value added by 11.6 per cent.

Distribution industries

Wholesale trade, except of motor vehicles and motorcycles recorded increases, of 28.7 per cent

for turnover and 32.3 per cent for purchases, partially explained by the increase in oil prices.




Service industries

All industries showed increases in both turnover and purchases, the only decreases in gross value

added were for arts, entertainment and recreation and administrative and support service activities

at -24.3 per cent and -5.1 per cent respectively.

Revisions

In line with the policy for ABI, revised data for 2008 will be published on 15 June 2010.

Background Notes

ABI Updates

1. Further releases of ABI data will be:

• 15 June 2010 - Final data for ABI 2008

• 29 July 2010 - Regional data for ABI 2008

Basic Quality Information

2. A Summary Quality Report for ABI/2 can be found athttp://www.statistics.gov.uk/about/data/methodology/quality/information_business_statistics.

asp. 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.

3. Response rates for 2008 can be found on the ABI Quality Measures page at

http://www.statistics.gov.uk/abi/quality_measures.asp.

Coverage

4. 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), Section A

hunting, forestry and fishing

Production industries Sections B-E

Construction industry Section F

Distribution industries Section G

Service industries Sections H, I, J, L, M, N, P (excludes public sector), Q




(excludes public sector and Group 86.2), R and S

The main areas excluded are agriculture (Groups 01.1, 01.2, 01.3, 01.4 and 01.5), financialintermediation, public administration and defence.

Definitions

5. 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. Thecost of capital investment, financial charges and dividends to shareholders are met from the

operating surplus.

Data collected and published through the ONS Annual Business Inquiry 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 or subsidies or

income earned-in-kind.

The ABI 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 ABI. 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

http://www.statistics.gov.uk/about/methodology_by_theme/inputoutput/.

Further information

6. Provisional 2008 UK national results at SIC (2007) 4 digit class level, giving both analysis and

tabular detail, will be available free of charge from the National Statistics website at

http://www.statistics.gov.uk/abi/.

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 [email protected] 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, together with methodological information. Further information on the

IDBR can be found at http://www.statistics.gov.uk/idbr.

Information on SIC (2007) is available on the National Statistics website at

http://www.statistics.gov.uk/statbase/Product.asp?vlnk=14012.

7. Details of the policy governing the release of new data are available from the media office.

8. 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

2009.

…………………………………………………………………………………………………………

Next publication: 15 June 2010

Issued by: Office for National Statistics, Government Buildings, Cardiff Road, Newport NP10 8XG

Media contact:

Tel Media Relations Office 0845 6041858

Emergency on-call 07867 906553

E-mail [email protected]

Statistical contact:Tel David Knight 01633 456605


Website:

www.statistics.gov.uk/abi



1 Details of income and expenditure by industry (Sections A-S) 2007 and 2008

Provisional 2008 United Kingdom data

Standard Year Turnover Purchases Approximate

Industrial Gross

Classification Value

Revised Added

2007

Section £ million £million £ million

A-S (note 4) 2007 Agriculture, fishing, production, 2,775,987 1,880,505 848,697

2008 construction, distribution andservices

3,104,888 2,157,517 894,132

A (Part) 2007 Agriculture, forestry and fishing .. .. ..

2008 4,813 3,175 1,834

B-E 2007 Production industries 624,506 399,196 208,889

2008 678,578 440,412 222,609

B 2007 Mining and quarrying 49,607 22,467 26,626

2008 64,649 23,624 41,382

C 2007 Manufacturing 476,736 313,777 146,545

2008 496,418 336,258 143,169

D 2007 Electricity, gas, steam and air 72,827 51,049 22,126

2008 conditioning supply 88,385 66,117 23,152

E 2007 Water supply, sewerage, waste 25,336 11,903 13,592

2008 management and remediationactivities

29,127 14,413 14,906

F 2007 Construction 209,961 131,656 81,712

2008 227,613 139,560 91,199

G-S (note 4) 2007 Distribution and service industries 1,941,520 1,349,653 558,0952008 2,193,883 1,574,371 578,491

G 2007 Distribution industries 1,053,101 882,370 159,206

2008 1,231,350 1,057,370 157,560

45 2007 Wholesale and retail trade and repair 145,096 122,090 24,174

2008 of motor vehicles and motorcycles 136,921 114,514 23,336

46 2007 Wholesale trade, except of motor 601,001 520,054 67,690

2008 vehicles and motor cycles 773,423 687,977 68,176

47 2007 Retail trade, except of motor vehicles 307,005 240,226 67,342

2008 and motorcycles 321,006 254,878 66,048



H-S (note 4) 2007 Service industries 888,418 467,282 398,889

2008 962,533 517,000 420,931

H 2007 Transport and storage 131,748 76,484 58,176

2008 138,687 81,483 60,049

I 2007 Accommodation and food service 65,568 34,395 31,185

2008 activities 67,649 35,924 31,588

J 2007 Information and communication 172,309 89,760 84,094

2008 183,040 94,278 90,152

L 2007 Real estate activities 39,721 15,236 ..2008 45,249 18,471 ..

M 2007 Professional, scientific and technical 171,848 74,193 97,582

2008 activities 199,462 88,089 111,150

N 2007 Administrative and support service 150,368 77,037 73,573

2008 activities 151,958 83,017 69,788

P (note 4) 2007 Education 24,420 15,069 9,404

2008 27,415 16,582 11,061

Q (note 4) 2007 Human health and social work 24,224 8,027 16,142

2008 activities 34,023 13,005 21,082

R 2007 Arts, entertainment and recreation 80,675 62,358 15,895

2008 84,166 69,307 12,036

S 2007 Other service activit ies 27,537 14,723 12,837

2008 30,886 16,844 14,025



Next publication: 15 June 2010

Issued by: Office for National Statistics, Government Buildings, Cardiff Road, Newport NP10 8XG

Media contact:

Tel Media Relations Office 0845 6041858

Emergency on-call 07867 906553


Statistical contact:

Tel David Knight 01633 456605


Website:

www.statistics.gov.uk/abi

annual business inquiry 2009

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