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Cinzano Bianco

Growth Rebound For Services Sector

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Hopes for the UK recovery have been lifted after official figures show the powerhouse services sector grew at its fastest rate in nearly nine years in January.

The index of services showed services output rebounded by 1.3% month-on-month in January after plunging 1.1% in snow-hit December, said the Office for National Statistics (ONS).

This is the fastest growth since July 2002.

The improvement in the services sector, which makes up 75.8% of the total economy, is spread across all sectors but is particularly pronounced in hotels and restaurants, which saw a 3.1% increase in output.

Economists said the improved figures will boost hopes the economy has returned to growth in the first quarter of 2011 after it went into a shock 0.5% decline in the final three months of last year.

75.8%... Christ almighty!

So we are pinning our hopes on hotels and restaurants it would seem.

Edited by the.ciscokid

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No--Banksters almighty!

This is "growth" in paper shuffling which will generate monster bonuses around Crimbo-time.

Pity we don't produce someting useful to the world but instead rely on Brown's dream of a service based miracle economy.

Edited by Realistbear

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75.8%... Christ almighty!

So we are pinning our hopes on hotels and restaurants it would seem.

What proportion of the economy are Hotels & Restaurants? not 75%

Whether that 75% figure is alarming or not depends entirely on how it is comprised. Does the production of software (for example) count as "services" or is it "manufacturing"? What about R&D/intellectual property activities for global pharma companies?

The temptation for people on here to mindlessly grab a statistic and start extrapolating from it is on a par with the BBC :(

Edited by pilchardthecat

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What proportion of the economy are Hotels & Restaurants? not 75%

Whether that 75% figure is alarming or not depends entirely on how it is comprised. Does the production of software (for example) count as "services" or is it "manufacturing"? What about R&D/intellectual property activities for global pharma companies?

The temptation for people on here to mindlessly grab a statistic and start extrapolating from it is on a par with the BBC :(

Thats HPC.co.uk!

Lotsa fun though.

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How many times does it have to be mentioned.

They are lowballing inflation figures hence the 'growth' figures come in unexpectedly higher.

Example : Highest manufacturing growth numbers since 1992 but also biggest trade deficit in history.

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What proportion of the economy are Hotels & Restaurants? not 75%

Whether that 75% figure is alarming or not depends entirely on how it is comprised. Does the production of software (for example) count as "services" or is it "manufacturing"? What about R&D/intellectual property activities for global pharma companies?

The temptation for people on here to mindlessly grab a statistic and start extrapolating from it is on a par with the BBC :(

Perhaps if you lumped leisure together with 'financial services' you'd get a pretty high figure which is why the stellar manufacturing figures are just a statistical irrelevence. For the past 30 years the UK has put all its ends in the service basket which itself relied on ever expanding debt - well the party's stopped. Like street urchins with their noses pressed up against a wealthy merchant's window, the British can only gaze enviously at German high end manufacturing unable to keep pace with demand while their workers enjoy healthy pay rises.

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Do we have a breakdown of the UK economy as per sectors?

How big is the finance/banking/debt enlargement sector?

Manufacturing was about 12% falling from the low 20s under the Major government, I seem to recall.

It really needs to be up in the high 20s, though the high cost of living/production might hamper that.

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Perhaps if you lumped leisure together with 'financial services' you'd get a pretty high figure which is why the stellar manufacturing figures are just a statistical irrelevence. For the past 30 years the UK has put all its ends in the service basket which itself relied on ever expanding debt - well the party's stopped. Like street urchins with their noses pressed up against a wealthy merchant's window, the British can only gaze enviously at German high end manufacturing unable to keep pace with demand while their workers enjoy healthy pay rises.

First off manufacturers buy services. They use distribution companies to move finished goods, they use telecomunications, they use IT services and they also use financial services as well. So even though I agree that Labour shrank and ignored the manufacturing base of the country (manufacturing output was larger when Major left office than when Thatcher entered office), it is sill large enough to have a pull through effect of the service side of the economy as well.

The Germans also gaze enviously at British manufacturing, Mercedes bought Bentley, BMW bought Rolls Royce cars. When Mercedes wanted a Formula One team they bought a British one, when they needed a formula one engine they bought Ilmor a British company and sill make all F1 engines in the UK. Think about it the German car industry is so crap it can not even make a simple thing like a Formula One engine! Even the French can make one. Then when German/French EADS wanted some state of the art high tech wings, where did they come, oh yes the UK, Boeing today still can not make these wings that the UK has been making them for years.

Also German wages have been stagnant for a number of years and the German worker has been told no large pay rise for the foreseeable future.

Here are the stats for the year to date when Germany is booming. Do not mix up what the unions ask for 8% to 11% per annum but what they settle for 1.9% to 3%.

http://imarketnews.com/?q=node/28572

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What proportion of the economy are Hotels & Restaurants? not 75%

Whether that 75% figure is alarming or not depends entirely on how it is comprised. Does the production of software (for example) count as "services" or is it "manufacturing"? What about R&D/intellectual property activities for global pharma companies?

The temptation for people on here to mindlessly grab a statistic and start extrapolating from it is on a par with the BBC :(

So why not enlighten us then?

Mindless though it may be, 76% of the economy being defined as "services" is rather surprising to me... I can only apologise for offending your sensibilities with my surprise at said mindless statistic.

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So why not enlighten us then?

Mindless though it may be, 76% of the economy being defined as "services" is rather surprising to me... I can only apologise for offending your sensibilities with my surprise at said mindless statistic.

I can't enlighten you - as i said, i don't know what that 75% is really made up of either.

I bet it does include the two examples i gave. If a US company employs 500 people in the UK to do R&D, and pays their salaries out of earnings made from products it sells outside the UK, that's probably counted as a service industry - but there's a big difference between something like that (which would impact balance of trade etc) and a restaurant.

The only point i'm making is that you should not draw any conclusions at all from a statistic like that. It devalues the site, leave it to the BBC.

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So why not enlighten us then?

Mindless though it may be, 76% of the economy being defined as "services" is rather surprising to me... I can only apologise for offending your sensibilities with my surprise at said mindless statistic.

If you look at the CIA world fact book. Then in France 79% services, Germany 71.3%, Spain 71.6%, Italy 73.3% and UK 77.1. So we are high but not the highest of the major european economies especially as it is common opinion on here that France is a manufacturing powerhouse.

As to what makes up services then it is basically telecoms, it services, financial services, restaurents, hotels, public healthcare and social services (NHS), distribution of goods and people, legal work, care and lorry mots, services and repairs.

The full list is in the release below.

http://www.statistics.gov.uk/pdfdir/ios0311.pdf

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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