Where does IBISWorld source its data for UK Industry Reports?
We source UK industry data primarily from The Office for National Statistics (ONS) and sector-specific sources. We source the latest available data from each source when our team of analysts update a report.
The Office for National Statistics (ONS)
Data from the ONS provides a foundation on which analysts build their research.
The primary survey from the ONS is the Annual Business Survey (ABS), which releases annual granulated industry statistics by 4-digit Standard Industrial Classification (SIC) codes. The ABS includes data for revenue, wages, number of firms and employees. This data can be found in the Industry Data table in the Key Statistics chapter of Industry Reports. The Industry Data table is the basis for many of the charts found throughout reports, including the Performance Snapshots, Business Concentration, Cost Structure Benchmarks and International Trade charts.
The figures after the current year in the Industry Data table and related charts are forecast using our Forecasting Methodology.
Analysts also use the following catch-all and sector-specific surveys from the ONS to cover data not included in the ABS.
UK business; activity, size and location: This annual survey provides a breakdown of establishments by industry, size and geographic location.
UK Manufacturers' Sales by Product (PRODCOM): This report provides annual manufacturer sales broken down by individual product types. We use this data to create our product segmentation and fill any gaps in the ABS.
Retail sales pounds data: This survey provides a monthly breakdown of retail sales in the UK into broad sectors.
Monthly Business Survey Turnover of Services Industries: This survey provides monthly Turnover for Service Industries broken down by 2-digit SIC codes.
Output in the construction industry: subnational and subsector: This quarterly updated dataset measures UK output in the construction market.
Other sector-specific sources
In addition to the ONS, we use industry and trade associations for insight into current issues and trends (e.g., regulation and taxation), collecting statistics on production values and/or market and product segmentation.
Additionally, we use the following sources for more granular annual data and industry-specific information:
HM Revenue and Customs (HMRC): The UK Trade Info service is used to compile international trade statistics for manufacturing industries.
Companies House: Company financials are collected from official accounts reported to Companies House. International business registers are also used where appropriate.
Department for Environment Food & Rural Affairs (DEFRA): DEFRA bulletins like Agriculture in the UK and Farm Business Survey are used in agricultural reports.
How does IBISWorld estimate unreported data?
ONS Data can have incomplete data for some years, especially for more minor industries. To estimate unreported data, we employ various methods depending on the industry, type of data and data availability.
Some methods used by our analysts rely on Compound Annual Growth Rates (CAGR), Business Environment Driver (BED) growth rates, product sales growth rates, major companies' growth rates and industry ratios.
Compound Annual Growth Rates (CAGR)
Unreported Key Statistics data such as revenue, establishments, enterprises, employment and wages can be estimated in several ways, including using Compound Annual Growth Rates (CAGR).
Example: Motorcycle Manufacturing in the UK (SIC – C30.910)
The ONS’s Annual Business Survey has missing revenue data for the years 2017-18 and 2020-21. To estimate the revenue for these years, we apply a Compound Annual Growth Rate (CAGR) to the revenue figures in the surrounding years (2016-17 and 2022-23) to estimate how the revenue grew on average over time. Once we have this estimated growth, we can also look at the available data, like the number of enterprises, industry value added and employment costs, to better understand each year's variability.
Business Environment Driver (BED) growth rates
Our analysts apply BED growth rates to the latest reported data to estimate recent unreported figures. Business Environment Drivers are external factors that influence the performance, growth and profitability of industries. These drivers can include economic indicators, demographic trends and market-specific variables that provide valuable insights for forecasting industry trends.
Example: Residential Building Construction in the UK (SIC - F41.202)
The ONS has not publicly released 5-digit ABS data since 2019. Since then, all data has combined residential and commercial building construction under the 4-digit F41.20. To estimate more isolated revenue for the Residential Building Construction Market, analysts use various Business Environment Driver (BED) growth rates specific to the market.
Using the overall construction sector’s performance as a baseline, analysts apply the growth rates of various external indicators to get a better picture of the residential market alone. Housing Starts (K2840) is used alongside the House Price Index (F6122) to see how many new residences are being built and at what price they can be sold. Analysts also use Number of Residential Property Transactions (D1134) to get a view of demand conditions in the housing market.
This meticulous approach ensures that each sub-market within the construction industry is analysed using the most relevant economic indicators, providing more accurate and granular forecasts. By leveraging these targeted BED growth rates, analysts can generate robust and well-founded estimates, even in the absence of separated ONS data.
Growth rates of product sales
IBISWorld analysts use the sales growth of specific products to estimate unreported data. Analysts use the ONS PRODCOM dataset to focus in on trends for each product included in the broader industry. Because of differing methodologies, PRODCOM and ABS do not always align in absolute value for sales/revenue, but analysts can use PRODCOM to extrapolate growth trends for missing revenue data.
Example: Bread & Bakery Goods Production in the UK (SIC C10.710)
The ABS did not report revenue data for the year 2022-23 for this industry. To estimate product-level data for this year, we use the PRODCOM sales figures for this industry. The industry is comprised of product codes SIC 10711100 and SIC 10711200. We apply the sales growth of these product codes to estimate the revenue growth of the entire industry.
Growth rates of major companies
Analysts sometimes use the revenue growth rates of major companies to estimate unreported data, particularly in industries where a few companies dominate the market. By examining the performance of these key players, analysts can make educated assumptions about the industry's overall growth. This method can be especially useful when up-to-date or detailed data for the entire industry is not available.
Example: Sound Recording & Music Publishing in the UK (SIC J59.200)
The UK Sound Recording and Music Publishing industry is dominated by the “Big Three” publishers, Universal Music Group, Warner Music Group and Sony Music. Due to this concentration, the financial performance of these major players significantly influences the industry. Analysts can gain insights into the overall market dynamics by analysing the recent annual and quarterly reports of these leading companies.
For instance, if these top companies reported an average revenue growth of 5% over the past year, analysts might extrapolate this growth rate to estimate the industry's performance. This approach allows analysts to produce more accurate and timely estimates, even when comprehensive industry-wide data is not readily available.
Such an estimation method provides a pragmatic way to understand market trends, making it a valuable tool in the absence of complete data sets. However, analysts must consider any significant anomalies or external factors affecting the major companies to ensure their estimates remain as accurate as possible.
Industry ratios
Analysts apply industry ratios of parent industries to estimate specific Key Statistics figures.
Examples
Enterprises: If we have the number of establishments but not enterprises for an industry, we can use the ratio of enterprises to establishments from the parent industry and apply this ratio to the number of establishments in the industry we are analysing to estimate the number of enterprises.
Employment: If we have industry revenue but lack employment data, we can estimate the number of employees using the parent industry's revenue per-employee ratio. For example, suppose a specialised sector generates £100 million in revenue, and the parent industry earns £1 million in revenue per employee. In that case, we can estimate that there are 100 employees in the specialised industry (£100M / £1M = 100 employees).
Wages: If we have the number of employees but not wage data, we can estimate industry wages using the average wage from the parent industry. For instance, if an industry employs 100 workers and the parent industry has an average wage of £50,000 per employee, we can estimate the wage expenses at £5,000,000 (100 employees * £50,000 per employee).
For any additional questions regarding IBISWorld’s UK data sources, please reach out to your Client Relationship Manager. If you’re not an IBISWorld member, please contact us to learn more about our membership options.