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As part of the monitoring and evaluation framework set out in the Industrial Strategy, the government has committed to tracking 6 economic indicators:

• business investment
• gross value added (GVA)
• exports
• number of large ‘home-grown’ businesses
• labour market outcomes such as jobs
• productivity

This note explains the methodology behind these indicators. Ìý

1. Notable revisions since the last quarterly update

The Department for Science, Innovation and Technology has revised its SIC-based proxy definition for the Digital and Technologies (D&T) sector, as set out in its recent D&T sector statistics publication. Indicators that rely on SIC-based mapping (business investment, GVA, payrolled employees, and productivity) have been updated to reflect this change.

The Department for Health and Social Care and the Office for Life Sciences have revised their HS-based definition of the Life Sciences sector. The goods exports series has been updated to reflect this change. The updated mapping is published in the Industrial Strategy exports mapping table alongside the quarterly update (as a one-off publication).

Indicators apportioned using the Annual Business Survey (business investment and GVA)Ìýhave been updated to reflect theÌýpublication ofÌý.Ìý

Payrolled employees (labour market indicator) has movedÌýtoÌýaÌýseasonally adjusted series to align with other indicators.

2. Estimating quarterly economic indicators for the IS-8Ìý

This section sets out an approach for the following economic indictors:

• business investment
• GVA
• employment
• productivity

2. 1 Mapping the IS-8

°Õ³ó±ð IS-8 cannot be precisely mapped and measured using official statistics. The Office for National Statistics (ONS) economic data is based on the Standard Industrial Classification (SIC) system, which does not always align with or capture the full detail of ‘frontier industries’ (subsectors – for example, AI) within the IS-8. As a result, coverage varies across sectors.

The SIC system is hierarchical, ranging from broad sections to detailed 5-digit subclasses. To improve accuracy, we map IS-8 sectors using 4-digit SIC codes wherever possible, as higher-level SIC categories are too broad. This approach allows us to extract more precise economic metrics for each sector.Ìý

Table 1 below summarises how well each IS-8 sector is represented by the SIC framework.ÌýSICÌýdefinitions for the IS-8Ìýare publishedÌýhere.

Table 1: SIC-based definition coverage across the IS-8

Advanced Manufacturing	Proxy SIC-based definition
Clean Energy Industries	Not easily represented by SIC, with no coverage
Creative Industries	Well defined by SIC
Defence	Not easily represented by SIC, with partial coverage
Digital & Technologies	Proxy SIC-based definition
Life Sciences	Not easily represented by SIC, with partial coverage
Financial Services	Well defined by SIC
Professional and Business Services	Well defined by SIC

Clean EnergyÌýIndustriesÌýcannot be proxied at all under the SIC systemÌýsoÌýis not capturedÌýin the Business Investment, GVA, Employment, or Productivity metrics. Defence and Life SciencesÌýonly have partial coverage. Thus, overall IS-8 estimatesÌýfor the economic indicatorsÌýwill not fully reflect allÌýeightÌýsectors. Estimates are at the IS-8 sectorÌýlevelÌýratherÌýthanÌýthe frontier industry level for all frontier industries outlined in the Industrial Strategy.Ìý

The IS-8 sectors are not mutually exclusive; businesses can belong to more than one IS-8 sector. Therefore, we use a unique list of SIC codes rather than summing the totals for each sector.

2.2 Data sources and methodology

We use a combination of official datasets and estimation techniques, depending on how well each sector aligns with theÌýSICÌýsystem:

1. Direct use of official data

For sectors such as Financial Services and Professional and Business Services, which can be directly mapped at the 2-digitÌýSICÌýlevel, figures are taken directly from official data.

2. Apportionment for other sectors

For other sectors, it is necessary to produce estimates for lower-levelÌýSICÌýbreakdowns than are published in timelier official data.

We apply apportionment fractions to the latest 2-digitÌýSICÌýdata to estimate data for low-levelÌýSICÌýindustries. This approach combines 2 objectives:

• timeliness – using the most up-to-date data available ensuring consistency with quarterly national accounts data
• granularity – ensuring data reflects detailed sector structures

These fractions are derived from the Inter-Departmental Business Register (IDBR) and Annual Business Survey (ABS), both of which provide granularÌýSIC-level data. While theÌýIDBRÌýis timelier, it does not coverÌýGVAÌýor investment; for these measures, theÌýABSÌýis used as it collects comprehensive sector-level financial information.

All apportioned values use the same price deflator as the 2-digitÌýSICÌýlevel.

3. Data sources by metric

Table 2 summarises the main data sources for each economic metric.

Table 2: Data underpinning each economic metric

Metric	Industrial Strategy growth-driving sectors
Business investment	• ONS datasets on investment by industry (data is assembled from several published ONS spreadsheets on investment: Industry-level data taken fromÌý, , , • apportioned using the
GVA	• • apportioned using the
Employment	• payrolled employees from . Monthly figures are averaged to produce quarterly data • apportioned using the ), breakdowns taken by Department for Business and Trade (DBT) from the IDBR dataset
Productivity (output per job)	• divided by • apportioned using the ), breakdowns taken by DBT from the IDBR dataset

We use 2023 prices forÌýGVA, business investment, and output per worker, consistent with the national accounts.

These metrics will be updated in future quarters to incorporate historic actuals and revised sector mixes when more accurate or recent data is published byÌýONS. Each new quarterly update supersedes all previous figures, so users should always refer to the latest release.[footnote 1]

Approach for exports

OfficialÌýONSÌýandÌýHMRCÌýtrade data is not readily available at theÌýIS-8Ìýsector level, so a bespokeÌýIS-8Ìýtrade definition has been created. This can be found on theÌýIndustrial Strategy quarterly update April to June 2026.

Services exports are classified using the Extended Balance of Payments Classification system (EBOPS), and goods exports using Harmonised System (HS) codes. IndividualÌýIS-8Ìýsectors can export both goods and services – for example, Digital and Technology exports both semi-conductors (goods) and cyber-security (service).

Estimates of trade in services and trade in goods are presented as separate values because they are not comparable on any basis so should not be added together. They use different data sources and different classification systems, and measure different concepts of trade.

TheÌýIS-8Ìýsectors do not fully align with these classification systems (see table 3 and 4 for coverage).ÌýEBOPSÌýuses broad categories making it difficult to isolate specificÌýIS-8Ìýcomponents, whileÌýHSÌýcodes classify products, rather than industries or technologies, which limits coverage of emerging sectors.

For example, Clean Energy Industries exports are likely underestimated when using an HS-based approach compared to the (LCREE) as many clean energy products do not have dedicated HS codes and so sit within broader HS codes that also include non-clean energy products. These broader HS codes have been excluded from this analysis. However, ONS LCREE is subject to a significant time lag, so HS codes have been used for more timely monitoring. The HS codes used account for the 6 frontier industries identified in the Clean Energy sector plan rather than clean energy sector as a whole and are subject to change as further analysis is undertaken.

An HS-based approach for Defence differs from the UK Defence Export Statistics publication, which relies on an annual survey of defence orders won by known UK companies operating in the sector. The latest available data is for 2024, so it cannot be used to track Defence exports in the quarterly update.

AnÌýEBOPS-based approach for Creative Industries differs from the Department for Culture, Media, and Sports’ÌýTrade in Services Economic EstimatesÌýpublication, which is classified by the business involved in the trade and not the type of service provided. The latest available data is for 2023, so it cannot be used to track Creative Industries exports in the quarterly update.

TheÌýEBOPSÌýandÌýHSÌýIS-8Ìýmapping is subject to change as further analysis is undertaken.

Table 3:ÌýEBOPS-based definition coverage across theÌýIS-8

Advanced Manufacturing	Not applicable
Clean Energy Industries	Not applicable
Creative Industries	±Ê°ù´Ç³æ²â EBOPS-based definition
Defence	Not applicable
Digital & Technologies	±Ê°ù´Ç³æ²â EBOPS-based definition
Life Sciences	Not applicable
Financial Services	Well defined by EBOPS
Professional and Business Services	±Ê°ù´Ç³æ²â EBOPS-based definition

Table 4:ÌýHS-based definition coverage across theÌýIS-8

Advanced Manufacturing	±Ê°ù´Ç³æ²â HS-based definition
Clean Energy Industries	Not easily represented by HS, with partial coverage
Creative Industries	Well defined by HS
Defence	±Ê°ù´Ç³æ²â HS-based definition
Digital & Technologies	±Ê°ù´Ç³æ²â HS-based definition
Life Sciences	±Ê°ù´Ç³æ²â HS-based definition
Financial Services	Not applicable
Professional and Business Services	Not applicable

ONS Trade in ServicesÌýisÌýused to measure services exports.ÌýThe data was extracted fromÌý.ÌýServices export data is collected viaÌýaÌýsurvey and measures the value of transactions of UK businesses by industry. The dataÌýisÌýcalculated on theÌý‘change of ownership’Ìýprinciple of trade, meaning trade is recorded when ownership of the service transfers between UK and non-UK entities.ÌýÌý

HMRC Trade in GoodsÌýdataÌýisÌýused toÌýmeasureÌýgoods exports.ÌýThe data was extracted from theÌýÌýtable.ÌýHMRC trade in goods data is based on a ‘cross-border’ or ‘physical movement’ principle where goods entering and leaving an economic territory are recorded as imports andÌýexportsÌýrespectively.

2.3 Approach for newÌýlarge ‘home-grown’Ìýbusinesses

For a business to be included as part of the metric, it must satisfy all the following criteria:Ìý

• the company must be founded in the UK. It originated in the UK and is not a subsidiary or branch of a foreign firm.ÌýThis includes dual-origin firms and those founded in former British territories that have since incorporated as an independent UK parent companyÌý
• it is headquartered in the UK, meaning it is incorporated in the UK and registered with Companies House
• there is no foreign parent company – it is not majority owned or controlled by a foreign entity
• the company has a significant economic footprint in the UK. This meansÌýa significant proportionÌýof its workforce, operations, or supply chain is based in the UK
• the company must have a valuation benchmark of over £10 billion

ToÌýascertainÌýa valuation benchmark of £10 billion, market capitalisation and post-money valuations will be used. These measures will capture both listed and private companies in the UK.ÌýDataÌýis collectedÌýfrom Companies House andÌýCompaniesMarketCap.comÌýto calculate company valuations.ÌýÌý

Based on the above definition and current analysis as of 3 June 2026, there are currently 25 businesses in scope. This number represents a baseline of existing businesses, rather thanÌýexclusively new large firms. The number is subject to revision as further analysis is undertaken.

3. Major new investments made in IS-8 sectorsÌýÌý

The quarterly update summarises the major investments in the IS-8 and their related job numbers. These are listed in the accompanying investment totals spreadsheet. We have recorded investment projects where they create real assets for the UK economy (for example, a factory) rather than financialÌýtransactions or transfers (for example, share purchases), where government has been involved in the process or where they stem from policy decisions made as part of the Industrial Strategy.

The figures represent the nominal value over the lifetime of each investment and reflects the position at the point of announcement, rather than when the investment occurs or jobs are created. Therefore, they do not represent completed investment to date. The data is not subsequently updated or tracked in the table, so the actual amount invested may change after the original announcement.

The figures include programme‑level private sector investment announcements that are not attributable to a single company. For these announcements or where announcements are updates from commitments madeÌýin previous quarters, we recordÌýonlyÌýthe net increase and exclude the previously committed value.Ìý

Investment commitments are drawn from sourced public announcements. As it is a snapshot in time, they may therefore be subject to revisions, corrections, removals, or additions.Ìý

4. Major new exportÌýannouncementsÌýin IS-8 sectorsÌýÌý

The quarterly update summarises major export announcements relating to the IS-8 over the last quarter and their related jobs numbers, as listed in the accompanying export totals spreadsheet.

These figures reflectÌýthe nominal value ofÌýtrade deals,Ìýexport deals, contracts, sales, or other agreements that have resulted from support provided by HMG. This is separate fromÌýDBT’sÌýreporting on export wins, which only refers to support provided by DBT only and is compiled via internal reporting rather thanÌýsourcedÌýpublic announcements.ÌýÌý

AsÌýwith investment announcements,ÌýfiguresÌýare drawn from public sources,Ìýreflect the position at the point of announcementÌýandÌýare notÌýsubsequentlyÌýupdated or tracked, so theÌýamount of money that materialises in the economyÌýmay changeÌýafterÌýthe original announcement.ÌýÌý

Where announcements are updates from commitments made in previous quarters, we record only the net increase and exclude the previously committed value.ÌýÌýÌý

5. Public finance supportÌýfor UK businesses to scale and exportÌý

The overall figure of public finance support for UK businesses to scale and export includes investments and support that have been publicly announced within the last quarter by Public Finance Institutions such as UK Export Finance, the British Business Bank, and the National Wealth Fund.

This figure should be treated as a lower bound, as these institutions do not represent all of government’s financial support delivered via financial transactions to IS-8 companies during this period.

The value (£m)Ìýrefers to the financial contribution from the relevantÌýPublic Finance Institution.ÌýThis supportÌýtakesÌýa range of forms, such asÌýa direct equity investment, commitmentÌýby aÌýPublic Finance InstitutionÌýinto aÌýthird-partyÌýfund as a limited partner,Ìýa financial guarantee,Ìýor a combination of these as blended finance.ÌýÌý

Some of the public finance announcements included may overlap with those reported in theÌýinvestment orÌýexports announcement summary, for example where a Public Finance institution has providedÌýexportÌýsupport.Ìý

AÌýselectionÌýofÌýthis support and investmentÌýisÌýincluded inÌýthe update underÌýExamples of public finance support.