INTERNATIONAL TRADE IN SERVICES 2006

Published by the Office for National Statistics

CONTENTS
Page

INTRODUCTION................................................................................................................................... 1 NOTES Reliability and interpretation of the estimates ...................................................................................................... 2 Source data ........................................................................................................................................................... 2 Coverage............................................................................................................................................................... 3 References ............................................................................................................................................................ 3 Definitions of geographical regions...................................................................................................................... 4 ANALYSIS Total Exports and Imports of International Trade in Services 2006. 5 Section A Trade in services by type of service, or product .......................................................................... 6-7 Section B Trade in services analysed by industry ........................................................................................ 8-11 STATISTICAL TABLES

Total Exports and Imports of International Trade in Services

A0 Total International Trade in Services analysed by continents and countries..12

Section A Trade in services analysed by type of service, or product (2006) A1 A2 A3 Royalties analysed by continents and countries ................................................................................... 13 Research and Development analysed by continents and countries....................................................... 14 Travel analysed by continents and countries ........................................................................................ 15

Section B Trade in services analysed by industry (2006) B1.1 B1.2 B1.3 B2 B3 B4 B5 B6 B7 B8 B9 Annex 1 Service Earnings of UK Banks analysed by continents and countries- credits..................................... 16 Service Earnings of UK Banks analysed by continents and countries- debits...................................... 17 Service Earnings of UK Banks analysed by continents and countries- balances.................................. 18 Computer Services Industry analysed by continents and countries ...................................................... 19 Advertising and Market Research Industry analysed by continents and countries............................... 20 Management Consultancy Industry analysed by continents and countries........................................... 21 Petroleum, Chemicals and Pharmaceutical Industry analysed by continents and countries ................. 22 Transport Equipment Industry analysed by continents and countries .................................................. 23 Film and Television Industry analysed by continents and countries .................................................... 24 Consulting Engineers Industry analysed by continents and countries .................................................. 25 Manufacturing Industry analysed by continents and countries............................................................. 26 Background Notes for the International Trade in Services Survey................................................. 27

INTRODUCTION
This 2006 publication is the third release of data from the annual International Trade in Services (ITIS) Survey. The main purpose of the publication is to respond to the increasing demand for information on international trade in services. The data are classified according to the fifth edition of the International Monetary Fund (IMF) Balance of Payments Manual (BPM5). The International Trade in Services survey provides a detailed breakdown of annual trade in services estimates analysing data by product, by industry and geographically. Please note that the totals in this publication (Table A0) only include data collected via the ITIS survey. Data relating to Travel and Banking are not included. The Film and Television Industry (Table B7) is also excluded and is compiled via a separate survey. The ITIS survey is just one component of the Trade in Services (TIS) estimates. Data for TIS is consistent with the UK Balance of Payments which can be found in Pink Book Chapter 3. All the tables in this publication are analysed by continents and countries and are organised into two sections: A. B. Trade in services analysed by type of product Trade in services analysed by industry Email address:

claire.powell@ons.gov.uk james.evans@ons.gov.uk

NATIONAL STATISTICS ONLINE:

www.statistics.gov.uk
Web-based access to time series, cross sectional data and metadata from across the Government Statistical Service (GSS), available using the site search and index functions from the homepage. Download many datasets, in whole or in part, or consult directory information for all GSS statistical resources, including censuses, surveys, periodicals and enquiry services. Information is posted as PDF electronic documents or in XLS and CSV formats, compatible with most spreadsheet packages. Time Series Data Access to around 40,000 time series, of primarily macro-economic data, drawn from the main tables in a range of our major economic and labour market publications. Download complete releases, or view and download your own customised selection of individual time series.

www.statistics.gov.uk/timeseries

The ITIS survey was introduced in 1996, to meet the demand for improved product data required to meet the IMFs new classification, and the increased user demand for geographical disaggregates. The increase in the sample size of the survey from 10,000 to 20,000 in 2002 (inquiry year 2001) and ongoing improvements to the ITIS questionnaire have allowed more detailed analysis. The extended product and geographical presentation of trade in services has been made possible by the improved source data now available. This publication supersedes the tables in sections B and C of the former UK Trade in Services (UKA1) which was discontinued in 2005. Comments To make enquiries and comments about the contents of this publication please contact: Claire Powell (telephone 01633-456643) or James Evans (telephone 01633-456644); or write to the Office for National Statistics, Economic Surveys Division, Room 2.364, Cardiff Road, NEWPORT NP10 8XG.

NOTES
RELIABILITY AND INTERPRETATION OF THE ESTIMATES
The measurement of trade in services presents a difficult methodological problem, since the population is large and the occurrence (especially for imports) can be unpredictable and infrequent. Although the sample size of the ITIS survey was increased in 2002, given these measurement problems, it remains relatively modest and the quality of the estimates must be judged accordingly. A full description of the sampling strategy and methodology followed is available in a separate methodological note (see reference no.3). Sampling errors for the survey are within the basic quality information for this publication. In addition to the imputation of detail for some categories where the data are incomplete, there remains a margin of uncertainty about the accuracy of reported data. The finer the level of detail sought the greater the likelihood of misallocation. Enterprises reporting data are encouraged to make their best estimates, but as country attribution may not be a crucial aspect of the management information from which details are extracted, a significant degree of approximation is likely to occur. Given the conceptual and practical limitations described above, these estimates should be seen as a broad indication of the economic relationships between the UK and international economies. They will be more reliable and more meaningful in terms of broad geographical areas and major partner countries than for smaller partner countries. To avoid disclosing data on individual companies the tables have been arranged to remove these disclosive items. This is done wherever possible by suppressing the item so that non-disclosing headings are preserved. However, in some cases it has been necessary to combine headings in order to mask the disclosive data. In addition, some totals or balances may not exactly agree with the calculations on the components. This is due to rounding. A separate ONS survey, the Annual Survey of International Trade in Film and Television Services (FTV) covers these industries. The ITIS survey (which consists of a quarterly component addressed to the largest businesses and an annual component for the remainder) covers receipts from the provision of services to residents of other countries (exports) and payments to residents of other countries for services rendered (imports). Residents of other countries are companies, governments and individuals. Although companies classified to the financial auxiliaries sector are included in the ITIS survey, businesses classified to other financial areas are not included in the sample. This does not mean that financial services are not covered as these services can be imported by companies classified outside the financial sector. The ITIS surveys are based on a sample of companies derived from the Inter Departmental Business Register (IDBR). Approximately 20,000 companies for the annual component and 700 for the quarterly component were approached in respect of reference year 2006. Companies were asked to report figures for the calendar year 2006 although some firms provided figures for their nearest accounting year. The companies were asked to show the amounts for their imports and exports against the geographical area to which they were paid or from which they were received irrespective of where they were first earned. The FTV survey collects trade in services data for the Film and Television industries. A total of 763 companies were approached in respect of 2006. Results of the survey, including estimates of sampling errors, may be found in the FTV First Release of December 7th 2007. The purpose of the ITIS and FTV surveys is to record international transactions which impact on the UKs Balance of Payments, hence companies are asked to exclude from their earnings trade expenses such as the cost of services purchased and consumed abroad. Trade in services exports or imports which are included in invoices for the export or import of goods are excluded as they are already counted in the estimates for trade in goods. However, earnings from third country trade i.e. from arranging the sale of goods between two countries other than the UK and where the goods never physically enter the UK are included. This is known as merchanting. Earnings from commodity trading are also included. As with merchanting, the service element is the profit or loss. Royalties are the largest part of the total trade in services collected in the ITIS survey. These cover transactions for items such as printed matter, sound recordings, performing rights, patents, licenses, trade marks, designs, copyrights, manufacturing rights, use of technical know how and technical assistance.

SOURCE DATA
The data on trade in services found in this publication are derived in differing ways: For travel, data on expenditure by UK residents abroad and expenditure by visitors to the UK are derived from the International Passenger Survey (IPS). Information on the earnings of UK banks is supplied by the Bank of England, and the remainder of the data is covered by the International Trade in Services (ITIS) Survey carried out by the Office for National Statistics (ONS).

COVERAGE
The figures for the European Union (EU) relate to the membership of the EU in 2006. Trade with EU Institutions is also included in the EU totals and excluded from the International Organisations totals. One important change that arose from implementing the new European System of National and Regional Accounts (ESA95) in particular, and BPM5 with which it is consistent, is the exclusion of the Channel Islands and the Isle of Man from the definition of the UKs economic territory. These territories are not members of the EU and consequently should be excluded in order to comply with ESA95.

REFERENCES
1. 2. International transaction of the UK film and television industries (FTV) First Release 2006. Balance of Payments Manual (5th Edition 1993) International Monetary Fund. (ISBN155775-339-3). International Trade in Services Survey Methodological Notes.

3.

DEFINITIONS OF GEOGRAPHICAL REGIONS

The geographical groupings used in the tables that follow are as follows:

Europe
SPECIFIED COUNTRIES Albania Austria Belarus Belgium and Luxembourg Bulgaria Channel Islands Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Irish Republic Isle of Man Italy Hungary Latvia Liechtenstein Lithuania Luxembourg Malta Netherlands Norway Poland Portugal Romania Russia Serbia and Montenegro Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine OTHER COUNTRIES Andorra Bosnia-Hercegovina Gibraltar Macedonia Moldova Vatican City State

The Americas
SPECIFIED COUNTRIES Argentina Brazil Canada Chile Columbia Mexico Uruguay USA Venezuela OTHER COUNTRIES Anguilla Antigua & Barbuda Aruba Bahamas Barbados Belize Bermuda Bolivia British Virgin Islands Cayman Islands Costa Rica Cuba Dominica Dominican Republic Ecuador El Salvador Falkland Islands Grenada Guatemala Guyana Haiti Honduras Jamaica Montserrat Netherlands Antilles Nicaragua Panama Paraguay Peru St Kitts & Nevis St Lucia St Vincent Surinam Trinidad & Tobago Turks & Caicos Islands US Virgin Islands

Asia
SPECIFIED COUNTRIES China Hong Kong India Indonesia Iran Israel Japan Malaysia Pakistan Philippines Saudi Arabia Singapore South Korea Taiwan Thailand OTHER COUNTRIES Afghanistan Armenia Azerbaijan Bahrain Bangladesh Bhutan Brunei Cambodia Gaza & Jericho Georgia Iraq Jordan Kazakhstan Kuwait Kyrgyzstan Laos Lebanon Macao Maldives Mongolia Myanmar (Burma) Nepal North Korea Oman Qatar Sri Lanka Syria Tajikistan Turkmenistan United Arab Emirates Uzbekistan Vietnam Yemen

Australasia & Oceania

SPECIFIED COUNTRIES Australia New Zealand OTHER COUNTRIES American Oceania Australian Oceania Fiji Kiribati Marshall Islands Micronesia Nauru New Zealand Oceania Northern Mariana Islands Palau Papua New Guinea Pitcairn Polar regions Solomon Islands Tonga Tuvalu Vanuatu Western Samoa

Africa
SPECIFIED COUNTRY Egypt Morocco South Africa OTHER COUNTRIES Algeria Angola Benin Botswana British Indian Ocean Territories Burkina Faso Burundi Cameroon Cape Verde Central African Republic Chad Comoros Congo Cote dIvoire Djibouti Equatorial Guinea Eritrea Ethiopia Gabon Gambia Ghana Guinea Guinea Bissau Kenya Lesotho Liberia Libya Madagascar Malawi Mali Mauritania Mauritius Mozambique Namibia Niger Nigeria Rwanda Sao Tome & Principe Senegal Seychelles & Dependencies Sierra Leone Somalia St Helena & Dependencies Sudan Swaziland Tanzania Togo Tunisia Uganda Zaire Zambia Zimbabwe

UK TRADE IN SERVICES The tables that follow in the annex comprise detailed analyses of the UKs trade in services. There are two main ways of analysing the total trade: firstly by the type of service traded and secondly by the economic classification of the business which is engaged in the trade. By analogy with trade in goods we refer to the type of service traded as a product analysis the products being consistent with the 5th edition of the International Monetary Funds Balance of Payments Manual. The second type of analysis is referred to as the industry analysis. In the following section both types of tables, industry and product have been analysed on a geographical basis by showing the countries to which services are exported and from which they are imported. Both of these types of analyses are preceded by geographical analysis of imports and exports of total International Trade in Services. The industry analysis allows us to estimate the total international transactions in services for well-defined areas of the economy. It also tells us the exporting or importing country in relation to the UK.
Total ITIS analysed by continents 2006 - Exports

Asia 15%

TOTAL EXPORTS AND IMPORTS OF INTERNATIONAL TRADE IN SERVICES (ITIS) FOR 2006 Total ITIS analysed by continents and countries (Table A0) This is the second year that total exports and imports of International Trade in Services are being published. Europe continues to dominate both exports and imports with a 51 per cent and 55 per cent share respectively. The USA remains the single most prominent country with exports and imports of 13825 million and 6173 million respectively, accounting for 23 per cent and 22 per cent of total exports and imports. Exports to the USA have increased by 20 per cent from 11566 million in 2005 to 13825 million in 2006. Please note that total ITIS only includes data collected via the ITIS survey. Data relating to Travel and Banking are not included. The Film and Television Industry (Table B7) is also excluded and is compiled via a separate survey. Data for total Trade in Services is consistent with the UK Balance of Payments which can be found in Pink Book Chapter 3.

Rest of World 5%

Americas 29%

Europe 51%

Total = 59226 million

Total ITIS analysed by continents 2006 - Imports Rest of World Asia 4% 14%

Europe 55% Americas 27%

Total = 28379 million

TRADE IN SERVICES ANALYSED BY PRODUCT FOR 2006 (SECTION A) Royalties analysed by continents and countries (Table A1) Royalties are usually traded as fees or leases for the rights to use such things as franchises, copyrights, licences, patents, trademarks, etc, which together can be referred to as intangible assets. However, it is also possible to purchase these assets outright but the trade in the use of royalties is much greater than the trade in their purchase. The figures in Table A1 refer to the two types of transaction combined. It does not cover the Film and TV industries.

Royalties analysed by continents 2006 - Exports

Asia 31%

Rest of World 3%

Americas 26%

Europe 40%

Total = 6828 million

The table shows that the UK had a positive balance from royalties of 2424 million in 2006. This compares with a balance of 2280 million in 2005. Approximately 66 per cent of exports (receipts) and 87 per cent of imports (payments) were attributable to trade with Europe and the Americas. By country, as in previous years, trade in imports is predominantly with the United States of America (USA), representing 38 per cent of the UKs total trade in royalties. This has decreased by 10 per cent from last years level of 48 per cent. Trade in exports is predominantly within the European Union, again representing 35 per cent, as in 2005. The largest deficit in 2006 was with France at 622 million. This was due to imports increasing by 65 per cent from 530 million in 2005 to 877 million in 2006. The Irish Republic, Netherlands and Germany account for 45 per cent of total UK service exports within the European Union (EU). The largest importer of services to the UK within the EU was France accounting for 49 per cent of the total. This has contributed to the increase in the total EU imports by 25 per cent from 1427 million in 2005 to 1777 million in 2006.

Royalties analysed by continents 2006 - Imports

Asia 11%

Rest of World 2%

Europe 46% Americas 41%

Total = 4404 million

Total Royalties 2006 2005 8000 7000 6000 million 5000 4000 3000 2000 1000 0 Exports Imports Balance 2006

Research and Development analysed by continents and countries (Table A2) Research and Development services produced an overall trade surplus of 2582 million, very similar to that in 2005. Surpluses on trade with Europe and the Americas accounted for 95 per cent of that total. Exports to the USA were 2066 million, accounting for 43 per cent of the export total. Within the EU, exports to Germany were 551 million, a 25 per cent decrease compared to exports in 2005 of 731 million. In previous years the trading surplus within Asia was dominated by Japan with surpluses of 245 million in 2005, 359 million in 2004 and 483 million in 2003. However, the surplus in 2006 was 12 million, a decrease of some 95 per cent on 2005.

Travel analysed by continents and countries (Table A3) During 2006, overseas residents made 33 million visits to the UK spending 18313 million. Table A3 shows that visitors from the 25 member states of the EU accounted for 45 per cent of travel expenditure in the UK, while visitors from the USA accounted for just under 15 per cent. Total in 2005 = 16871m. Total in 2006 = 18313m. Meanwhile, UK residents made over 69 million visits abroad in 2006, spending 34291 million. Visits to EU25 countries accounted for 58 per cent of total expenditure, with spending in Spain amounting to 6156 million in 2006, while spending in France amounted to 3927 million and the USA amounted to 3990 million. Total in 2005 = 32781m. Total in 2006 = 34291m. The UK had a travel deficit of 15978 million in 2006. The majority of this was due to the travel deficit with EU25 countries (11621 million), although there was also a deficit of 2246 million with total Americas. The largest country surpluses were with Germany (413 million), China (324 million) and Norway (226 million).

2006 Travel Exports by Continent as a Percentage of Total Travel Exports

Australasia & Oceania 5%

Africa 4%

Asia 19%

EU25 45%

Americas 19%

Rest of Europe 8%

Total = 18313 million

2006 Travel Imports by Continent as a Percentage of Total Travel Imports

Africa 5% Asia 9% Americas 17%

Australasia & Oceania 4%

EU25 58%

Rest of Europe 7%

Total = 34291 million

TRADE IN SERVICES ANALYSED BY INDUSTRY FOR 2006 (SECTION B) Service Earnings of UK banks analysed by continents and countries (Tables B1.1-3) Data on UK banks is supplied by the Bank of England and includes all services exported or imported by UK banks. It is primarily composed of fees and commissions received and paid for various financial services, net spread earnings on foreign exchange and derivative transactions and also includes all other services. The UK banking industry surplus increased from 9291 million in 2005 to 11370 million in 2006. During this time exports of services by UK banks rose by 2446 million to 14692 million whilst imports rose by 367 million to 3322 million. The increase in exports was largely to Europe, which increased by 1511 million during 2006 and accounted for 62 per cent of total exports by UK banks. The largest exports to any country were to the USA (2463 million). The rise in imports was mainly from Asia and the Americas, which increased by 142 million and 136 million respectively during 2006. The top country for imports of services by UK banks was the USA (718 million).

Computer Services Industry analysed by continents 2006 - Exports Americas 34%

Europe 55% Rest of World 2%

Asia 9%

Total = 6697 million

Computer Services Industry analysed by continents 2006 - Imports

Asia 13%

Rest of World 2%

The Computer Services Industry analysed by continents and countries (Table B2) The total value of exports has increased by 19 per cent from 5651 million in 2005 to 6697 million in 2006. Imports have increased by 25 per cent from 2370 million in 2005 to 2953 million in 2006. The surplus of 3744 million is primarily attributable to the USA which accounts for 29 per cent and the Irish Republic which accounts for 18 per cent. As in the previous year the USA accounted for the largest value of exports for an individual country with a figure of 2151 million for 2006. This has increased by 35 per cent on the 2005 value of 1590 million.

Europe 47% Americas 38%

Total = 2953 million

Total Com puter Services Industry 2006

2005 8000 7000 6000 million 5000 4000 3000 2000 1000 0 Exports

2006

Im ports

Balance

The Advertising and Market Research industry analysed by continents and countries (Table B3) The UKs exports were mainly to Europe and the Americas: 62 per cent and 28 per cent of total exports respectively. Total exports increased by 12 per cent from 1707 million in 2005 to 1909 million in 2006. Of the total amount of UK exports to Europe, 67 per cent went to the countries in the EU, this was almost the same proportion as last year. The surplus with Europe as a whole, of 511 million, accounted for 52 per cent of the total balance of 990 million. Total imports have increased from 737 million in 2005 to 919 million in 2006, some 25 per cent. Imports within the EU have increased by 47 per cent from 412 million in 2005 to 605 million in 2006. This was largely driven by the Irish Republic and Germany with increases of 142 per cent and 49 per cent respectively. Last year, Asia exports nearly doubled from 65 million in 2004 to 121 million in 2005. This increase has been sustained with a further increase of 17 per cent to 142 million in 2006.

The Petroleum, Chemical and Pharmaceutical Industry analysed by continents and countries (Table B5) In this industry group, exports and imports have remained at similar levels to 2005. Exports have decreased by 4 per cent and imports have increased by 4 per cent. Exports within the EU have decreased by 13 per cent from 1422 million in 2005 to 1240 million in 2006. Europe as a whole has decreased by 6 per cent from 1694 million in 2005 to 1590 million in 2006. As in previous years, within Europe the Irish Republic remained the largest single player for UK exports within this industry, 37 per cent of the UKs total European exports. UK imports from the USA have increased from 571 million in 2005 to 754 million in 2006, some 32 per cent.

The Transport Equipment Industry analysed by continents and countries (Table B6) The Transport Equipment industry comprises SIC Divisions 34 and 35 and manufactures, amongst other things, motor vehicles, ships and aircraft. The Management Consultancy Industry analysed by continents and countries (Table B4) Exports within this industry group decreased significantly by 28 per cent from 1075 million in 2004 to 777 million in 2005. A 60 per cent increase in 2006 to 1241 million sees exports exceeding that attained in 2004. Total imports have increased by 58 per cent from 315 million in 2005 to 499 million in 2006. Within exports, Netherlands and the USA have increased significantly with 220 per cent and 88 per cent increases respectively. The largest proportion of the industrys exports were to Europe at 48 per cent, with the EU accounting for 33 per cent of UK total exports. Within the EU, exports to the Netherlands are more than double any other EU country. As in 2005 the largest import of services was from the USA. At 200 million, this was an increase of 130 per cent from 87 million in 2005. The USA accounts for 40 per cent of total imports. Exports within the EU are similar to those in 2005 with a 13 million increase to 1130 million. Overall exports increased by 4 per cent from 3209 million in 2005 to 3336 million in 2006. Total imports for the EU increased by 14 per cent from 666 million in 2005 to 757 million in 2006. The USA accounted for 29 per cent of total exports and 16 per cent of total imports.

The Film and Television Industry analysed by continents and countries (Table B7) The geographical distribution of exports and imports within the UKs Film and TV industry is dominated by Europe and the USA. Exports to Europe have increased by 201 million or 17 per cent in 2006. Exports to USA have decreased by 278 million or 29 per cent. The imports continue to be dominated by the USA increasing by 11 per cent to 1246 million and accounting for 63 per cent of total imports. This has contributed to a net deficit increase with the USA of 254 per cent from 158 million deficit in 2005 to a 559 million deficit in 2006. Included in imports from the EU are licences for the use of satellites for television broadcasting.

Film and Television Industry analysed by continents 2006 - Exports

Rest of World 16%

Americas 30%

Europe 54%

Total = 2511million

Film and Television Industry analysed by continents 2006 - Imports Rest of World 6%

Europe 29%

Americas 65%

Total = 1966 million

10

. The Consulting Engineers Industry analysed by continents and countries (Table B8) This industry produces significant positive trade balances, the largest of which is with Total Europe at 365 million. The industry continues to export considerably more than it imports, and has a trade surplus of 897 million for 2006. This has decreased by 21 per cent from the 2005 balance of 1131 million. Exports and imports for the USA have decreased by 64 per cent and 74 per cent respectively.

Manufacturing Industry analysed by continents 2006 - Exports Americas 29%

Asia 26% Europe 43%

Rest of World 2%

Total = 11546 million Manufacturing Industry by continent and countries (Table B9) As in 2003, 2004 and 2005, Europe, Asia and the Americas all made significant contributions to UK exports and imports in 2006. Europe remains the top trading partner in the manufacturing industries in 2006 with 43 per cent of the total exports. Within the EU, as in previous years, Germany and the Irish Republic received the largest amount of UK exports: 28 per cent and 20 per cent of the EU total, respectively. In terms of services imported by the UK manufacturing sector, the USA continues to be largest single supplier with 1659 million or 25 per cent of the total. The USA was also the largest country for UK exports at 3173 million or 27 per cent of the total. Exports to Netherlands increased by 54 per cent from 396 million in 2005 to 609 million in 2006.
Manufacturing Industry analysed by continents 2006 - Imports Rest of World 2% Asia 16% Europe 55%

Americas 27%

Total = 6582 million

Total Manufacturing Industry 2006

2005 14000 12000 10000 million 8000 6000 4000 2000 0 Exports Imports

2006

Balance

11

BACKGROUND NOTES
Basic quality information 1. Link to Summary Quality Report: A summary Quality Report for International Trade in Services (ITIS) can be found at www.statistics.gov.uk/quality reports. 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.

Relevance to users 2. Source of data: The results of the Annual and Quarterly Surveys into International Trade in Services (ITIS) provide Trade in Services data which contribute to key components of the measurement of the UKs Balance of Payments (BoP) and of Gross Domestic Product (GDP). The results are published in detail in UK Balance of Payments Pink Book. The annual survey is made up of approximately 20,000 businesses. This includes 13,500 businesses randomly selected from the Inter Departmental Business Register (IDBR). Selection is stratified by employment and Standard Industrial Classification (SIC). ITIS selects across the whole of the economy with a number of exceptions which are detailed at point 5 of this document. The remaining 6,500 businesses are made up of a fixed panel of known traders, and as such are not subject to weighting. Companies are asked to provide figures for the current calendar year where possible, although some companies provide figures for their actual accounting year. Types of transaction covered 3. Product: The statistical output from the ITIS survey covers the value of transactions between the UK and residents in other countries in respect of 51 products. Industry: The industry analysis enables estimation for the total international transactions in services by economic classification for well-defined areas of the economy using SIC information. Geographical: Both industry and product information are analysed geographically. The tables within this publication show the countries to which services are exported, and from which services are imported. Transactions not covered 4. The ITIS survey currently selects for the whole of the economy, with a number of exceptions:- Travel, Transport, Banking and other Financial Institutions, Higher Education, Charities, most activities within the legal profession and the Film and Television Industry. 27

Any goods element included in imports and exports returns are excluded, as they are already counted in the estimates for trade in goods. Accuracy 5. Response rates For Reference Period 2006 Forms Returned Response Rate 17,549 87 per cent

Sample Size 20,057

6.

Standard Errors For example, in 2006 the total value of exports for the Computer Services industry was estimated to be 6,697 million and the standard error was estimated as 223 million. By adding and subtracting the standard error from the estimate this can be interpreted as saying that:

there are approximately 19 chances in 20 that the true value lies within 6,251 million and 7,143 million (i.e. that we are 95% confident that the real value lies within this range). The true or real value is that which would have been obtained had data been collected from every business in the UK. The relative standard error is another way of interpreting the sampling error and is derived by expressing the standard error as a percentage of the published estimate. These quantities can be summarised for both exports and imports by means of a table.

28

Standard Errors for Exports 2006 Exports Estimate (M) Total ITIS industries of which: Petroleum, Chemicals, etc. Transport Equipment Advertising Computer Services 59226

Description

Standard Error (M) 555

Relative Standard Error (%) 0.9

4613

0.1

3336 1909 6697

13 56 223

0.4 2.9 3.3

Standard Errors for Imports 2006 Description Imports Estimate (M) Total ITIS industries of which: Petroleum, Chemicals, etc. Transport Equipment Advertising Computer Services 28379 Standard Error (M) 582 Relative Standard Error (%) 2.1

2102

0.4

1783 919 2953

6 24 57

0.3 2.6 1.9

Coherence 7. Comparison with Quarterly ITIS: In addition, the quarterly sample which is made up of approximately 700 survey contributors, also feeds into ITIS results. The quarterly survey is a subset of the largest companies, and the results are also used throughout the year to forecast total annual ITIS.

29

Comparison with the Film and Television Survey Data: The Film and Television Survey (FTV) is a separate survey, collecting trade in services data for the Film and Television industries. The survey is made up of approximately 750 companies. The results from this survey appear only in table B7, and are not included in tables presenting total ITIS. Comparison with 2006 Balance of Payments Pink Book Data The ITIS survey is just one component of the Trade in Services (TIS) estimates within the UK Balance of Payments Other (TIS) components are collected as follows: data on the travel and tourism is collected via the International Passenger Survey; banking data is sourced from the Bank of England; security dealers and insurance services are collected via ONS inquiries; transportation data is largely supplied by the Civil Aviation Authority and the Chamber of Shipping; lastly, trade in services transactions by embassies, consulates, military units & defence agencies are provided directly by government departments, foreign embassies and US Air Force bases in the UK. Notes to tables 8. The tables show International Trade in Services through a variety of formats. Some tables compare figures over several years, but the majority, provide the most recent geographic information by industry or product. The tables provide information in as much detail as possible, without disclosing the details of any individual companies. Any disclosive data is replaced by the following symbol throughout the tables ... It is important to note that within the geographical tables, amounts are shown against the geographical area from which they were received, irrespective of where they were first earned. The tables for Transport, Travel and Banking have been provided by Balance of Payments Financial Sector (BOPFS), as ITIS does not collect for these sectors of the economy. The table for the Film and Television industry has been collected via the Film and Television Survey. European Free Trade Association (EFTA) comprises Iceland, Liechtenstein, Norway and Switzerland. The sum of constituent items in tables may not always agree exactly with the totals shown, due to rounding. The following symbols have been used throughout: .. Figures suppressed to avoid disclosure of information relating to individual enterprises. Nil or less than half the final digit shown.

30

Publication Policy 9. Further Information The complete series of International Trade in Services publications are available to download free of charge at http://www.statistics.gov.uk. Prior to 2004 however it was entitled UKA1. Details of the policy governing the release of the new data are available from the Press Office. National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference. Crown Copyright 2008.

31