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This study provides a definition of what the service sector is, which industries it emcompasses and how it contributes to national levels of output and employment. It then analyses data from past and present statistical publications to illustrate certain trends in output for each industry group within the sector in both real and nominal terms. After assessing the importance of the services to the economy, the study looks at the methods used by these statistical institutions to estimate the real and nominal GDP figures, what problems they may face in measuring output, and some possible solutions to these difficulties, including a discussion of the off-shore sector.