Service Sector sees biggest fall for 15 months

Graham_Devon

This time it's hot weather to blame. Oh, and the royal wedding of course.

Not snow. Just the wrong type of sunshine.

UK service sector output saw its biggest fall in 15 months in April, but the Office for National Statistics said the figures had been affected by the royal wedding and hot weather.

ONS figures showed that service sector output contracted by 1.2% during April.

But the ONS said April was "unusual" due to the extra public holiday for the royal wedding, and the warmest weather for the month since records began.

The service sector accounts for about three-quarters of the UK economy.

It includes everything from hotels and restaurants to the banking industry and public transport.

April's decline in service sector output followed a 0.8% rise in March.

http://www.bbc.co.uk/news/business-13955306

HAMISH_MCTAVISH

Graham_Devon wrote: »

This time it's hot weather to blame. Oh, and the royal wedding of course.

Not snow. Just the wrong type of sunshine.

I understand the temptation to be sarcastic about weather influences on the economy, but there really is a significant impact for some types of businesses.

Really2

Year on year, output of the Service sector for April 2011 rose 0.8 per cent compared with April 2010. All five components of the Service sector increased. The largest contribution to the increase was transport, storage and communication which rose 3.7 per cent.

• Distribution output rose 0.8 per cent compared with April 2010. The largest contribution to the increase was retail which rose 2.6 per cent.

• Hotels and restaurants output rose 1.3 per cent compared with April 2010. The largest contribution to the increase was hotels.

• Transport, storage and communication output rose 3.7 per cent compared with April 2010. The largest contribution to the increase was air transport which rose 23.3 per cent.

• Business services and finance output rose 0.1 per cent compared with April 2010. The largest contribution to the increase was real estate activities which rose 1.5 per cent.

• Government and other services output rose 0.9 per cent compared with April 2010. The largest contribution to the increase was health and social work which rose 4.1 per cent.

Output from the service sector fell 1.2 per cent between March and April. The largest contribution to the decrease was business services and finance which fell by 1.3 per cent

Mmm now who have holidays on bank holidays?

Looks to me it shows a rise on the same quarter last year to me?

It includes seasonal adjustment so good news really GD?

The May and Junes figures show the best growth since pre bust???
http://www.forexfactory.com/calendar.php?do=geteventinfo&day=2011-5-25#chart=34566

System

HAMISH_MCTAVISH wrote: »

I understand the temptation to be sarcastic about weather influences on the economy

Maybe once or twice, but on the 50th time it makes you look a bit of an ignorant !!!!!!!.

shortchanged_2

HAMISH_MCTAVISH wrote: »

I understand the temptation to be sarcastic about weather influences on the economy, but there really is a significant impact for some types of businesses.

Some businesses will benefit, some will suffer. There should be some form of balance because you can't blame different types of weather on poor growth figures all the time. That would mean there is no weather climate that is suitable for growth in the UK economy. :eek:

Graham_Devon

Wow, well that didn't go down too well.

1. The Royal Wedding was hailed as being good for our economy. Now it's blamed as the figures have gone the other way.

2. Too much snow was blamed for less than ideal figures. Now it's too much sun. What weather conditions do they require? Mild and slightly overcast?

The decrease in business and finance.... Hardly surprising now is it. To suggest one bank holiday and a bit of sun pulled those figures, but not any of the others, is a little far fetched, is it not? Especially when last time around it was cold weather being blamed...and especially considiering the state of our economy...you only have to look at the high street and administrations at the moment. What are the high street stores blaming? A half hour thunderstorm in March?

ETA: The largest decrease was actually retail.

Really2

Why not look at the link I posted, May and June look to be very good.
http://www.forexfactory.com/calendar.php?do=geteventinfo&day=2011-5-25#chart=34566

Or do we only do the negative month?

shortchanged_2

Another major concern for the UK economy is that the service sector accounts for around 75% of the UK's GDP. With the struggling high street and consumers unwilling or unable to spend are we going to see negative growth in the next quarters figures and a subsequent double dip.

Graham_Devon

Really2 wrote: »

Why not look at the link I posted, May and June look to be very good.
http://www.forexfactory.com/calendar.php?do=geteventinfo&day=2011-5-25#chart=34566

Or do we only do the negative month?

So you only want to look at the positive months and accuse me of only looking at the negative months...lovely.

I haven't looked at any months. I've stuck to the timeframe the article has. The article timeframe states retail fell the furthest.

I understand your need to try and spin this as positive, but it's quite clearly not.

I assume you are trying to have a go at me here for some reason, rather than wanting to discuss the article?

Really2

Graham_Devon wrote: »

Wow, well that didn't go down too well.

1. The Royal Wedding was hailed as being good for our economy. Now it's blamed as the figures have gone the other way.

2. Too much snow was blamed for less than ideal figures. Now it's too much sun. What weather conditions do they require? Mild and slightly overcast?

For some one who moans about seasonal factors you sure use them enough.

http://forums.moneysavingexpert.com/showpost.php?p=44306018&postcount=1

Graham_Devon wrote: »

The indicies are a farce:
http://www.telegraph.co.uk/finance/economics/houseprices/8564655/UK-house-price-indices-labelled-a-farce.html

Strange you don't see him complaining towards christmas!

Graham_Devon wrote: »

Dunno who the bloke is, but I rather like his thoughtpath.

The variability of the data helps the optimists. House prices tend to be volatile month by month, with transactions impacted by holidays and weather, and the various indices often contradict. In April, for example, despite Halifax reporting a fall, the Land Registry believed house prices rose. This gives scope for commentators to project almost any trend from the short-term noise.

Guess it depends on if is used to supports your stance.;)

Really2

Graham_Devon wrote: »

So you only want to look at the positive months and accuse me of only looking at the negative months...lovely.

I haven't looked at any months. I've stuck to the timeframe the article has. The article timeframe states retail fell the furthest.

I understand your need to try and spin this as positive, but it's quite clearly not.

I assume you are trying to have a go at me here for some reason, rather than wanting to discuss the article?

I have linked to Forex factory and quoted the ONS on post 3!!!!

The figures are up for the year and fell in the one month you mentioned.
They are now back at + 0.9% for the last two months.

That would hint at GDP growth to me, but lets just concentrate on a month, the one with the extra day bank holiday.