E-Commerce (Hansard, 5 March 2003)

§ Mr. Timms

[holding answer 11 February 2003]: Sales and purchases over the internet are measured by the Office of National Statistics (ONS) as a proportion of the total value of sales and purchases. For statistical reasons this is more useful than measuring them as a proportion of GDP. GDP is a measure of economic activity, and therefore includes only the value added at each stage of development of a product or service. Data for 2002 will not be available until October 2003.

ONS E-Commerce Survey of UK Businesses: Sales and Purchases Made Over the Internet (excluding those for the finance sector¹)
Year	Sales over the internet £ billion	Sales over the internet as % of total value of sales	Purchases over the internet £ billion	Purchase over the internet as % of total value of purchases
2001	18.4	1.0	23.4	1.7

The 2000 ONS survey only covered enterprises with 10 or more employees, and slightly fewer areas of the economy². The 2001 figures shown below are on a consistent basis to give year on year comparability.

2001	£17 billion	1.0$	£19.5 billion	1.7$
2000	£12 billion	0.9$	£15.6 billion	1.6$

Notes:

¹There are particular measurement difficulties associated with capturing e-commerce activity and turnover in the financial sector, preventing the calculation of a reliable estimate for the value of e-commerce in this sector. ONS is working with international organisations (Eurostat, OECD) to help identify a solution but as yet no agreed method has been identified.

² The 2000 survey also covered slightly fewer areas of the economy, with the following sectors added for 2001: health and social work; recreational, cultural and sporting activities; other service activities. Sectors covered in both years were: manufacturing, utilities, construction, wholesale and retail, hotels and restaurants, transport and communication, finance and other business services.