Service sector turnover grows strongly in Q3

OVERALL business receipts from services rose 16.4 per cent year-on-year in the third quarter, with all major sectors contributing to the strong growth, the Department of Statistics (DOS) said yesterday.

The financial services sector put on a powerhouse performance, growing 46 per cent from last year to account for almost 15 per cent of business receipts in Q3.

But insurance, which is categorised with financial services, shrank one per cent year-on-year.
Excluding financial services, business receipts from services increased 12.2 per cent.

Quarter-on-quarter, business receipts from services rose 2.5 per cent.

In the real estate sector excluding developers, 'business continued to be brisk', DOS said.
Revenue from this sector increased by a third year-on-year in Q3 - a sixth straight quarter of double-digit growth since Q2 2006.

'Real estate agents, in particular, reported a significant increase in revenue during the quarter,' DOS said.

Receipts from leasing services were 11.5 per cent higher than a year earlier, with companies that lease equipment related to land, construction and civil engineering reporting higher income.

Another strong sector was business services, which accounts for almost a fifth of service sector receipts.

Market research and business management consultancy, for example, posted a 36.7 per cent rise in turnover.

Legal and accounting firms saw revenue rise 23.5 per cent, while architectural, engineering and technical firms saw an 18.1 per cent rise in receipts.

Advertising was the slowest growing sub-sector among business services, improving just 5.7 per cent.

Another relatively slow sector was transport and storage.

Including land, water and air transport, and storage and supporting services, the sector grew 9.1 per cent year on year.

Post and telecommunications grew 10.4 per cent year-on-year, while education (12.9 per cent) and health services (13.7 per cent) also had strong gains.

Recreational activity grew 2.1 per cent year on year.