Service industries pick up in Q1 but recovery remains “uneven”

Courier, warehousing and storage saw double-digit growth.

Major service industries registered growth in business receipts in value terms during the first quarter, but the recovery is uneven.

“Most of the major service industries registered year-on-year growth in business receipts in the first quarter of 2021, yet the pace of recovery was uneven across industries,” a government spokesman said in a statement. 

Increases were registered in business receipts of the courier (+47.3), warehousing and storage (+39.1%), financing (except banking) (+28.1%), import/export trade (+27.8%), transportation (+19.1%), accommodation services (+16.5%), wholesale (+12.1%) and real estate (+10.6%) industries. Meanwhile, the administrative and support service industry recorded a 10.9% decrease.

The increases were attributed largely to low bases comparison, adding that business receipts of some sectors are still blow its pre-pandemic levels.

“The economic recovery, coupled with the Government's relief measures, should render support to the services industries in the near term,” the spokesman said.

“Yet, the evolving global pandemic is still a key source of uncertainty, and the business environment for some industries, including those consumption- and tourism-related industries, will remain challenging.”

Moreover, the C&SD noted that analysed by service domain, business receipts of tourism, convention and exhibition services decreased 72.5% YoY; whilst computer and IT services rose 23.7%.