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SIC CLASSIFICATION

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United kingdom

Introduction

1. SIC was first introduced into the United Kingdom in 1948 for use in classifyingbusiness establishments and other statistical units by the type of economic activity inwhich they are engaged. The classification provides a framework for the collection,tabulation, presentation and analysis of data and its use promotes uniformity. Inaddition, it can be used for administrative purposes and by non-government bodies as aconvenient way of classifying industrial activities into a common structure.

Classification changes

2. Since 1948 the classification has been revised in 1958, 1968, 1980, 1992 and 1997.Revision is necessary because, over a period of time, new products and the newindustries to produce them emerge and shifts of emphasis occur in existing industries. Itis not always possible for the system to accommodate such developments and after aperiod of time updating the classification is the most sensible action. The 1997 changeswere not a full scale revision but a response to user demand for a limited number of additional subclasses together with some minor renumbering.

International classifications

3. From the outset, the UK SIC followed the same broad principles as the relevantinternational systems. Nevertheless, there were differences in detail between the two asISIC reflected the structure of economic activity in the world as a whole rather than thatin one particular country.

4. In 1980, one of the principal objectives of the revision of the SIC was to examine

and eliminate differences from the activity classification issued by the Statistical Officeof the European Communities (Eurostat) and entitled 'Nomenclature gnrale desactivits conomiques dans les Communauts europennes', usually abbreviated toNACE.

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UK SIC Structure

5. UK SIC(92) is based exactly on NACE Rev 1 but, where it was thought necessaryor helpful, a fifth digit has been added to form subclasses of the NACE Rev 1 four digit

classes. Thus, UK SIC(92) is a hierarchical five digit system. However, at the first or highest level of aggregation, unlike the SIC(80) which had 10 divisions, UK SIC(92) isdivided into 17 sections, each denoted by a single letter from A to Q. Some sectionsare, in turn, divided into subsections (each denoted by the addition of a second letter).The letters of the sections or subsections can be uniquely defined by the nextbreakdown, the divisions (denoted by two digits).

Section D Manufacturing (comprising divisions 15 to 37)

Subsection DB Manufacture of textiles and textile products (comprising divisions 17and 18)

Division 17 Manufacture of textiles

Group 17.4 Manufacture of made-up textile articles, except apparel

Class 17.40 Manufacture of made-up textile articles, except apparel

Subclass 17.40/1 Manufacture of soft furnishings

There are 17 sections, 16 subsections, 60 divisions, 222 groups, 503 classes and 253subclasses. The full structure of UK SIC(92) is shown on pages 5-30.

Related classifications

6. At the international level, the United Nations has the Provisional Central ProductClassification (CPC).(6) The main aim of the CPC is to provide a general framework for

international comparisons of product statistics. It applies to tradeable and non-tradeablegoods and services

7. The CPA is linked to the PRODCOM list, which extends the CPA code structurefrom six to eight digits. PRODCOM is from PRODucts of the European COMmunity, andis a list of some 4,800 products, developed by Eurostat.

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UK SIC(92) division structure

A. AGRICULTURE, HUNTING AND FORESTRYB. FISHINGC. MINING AND QUARRYINGD. MANUFACTURINGE. ELECTRICITY, GAS AND WATER SUPPLYF. CONSTRUCTIONG. WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES,

MOTORCYCLES AND PERSONAL AND HOUSEHOLD GOODS

H. HOTELS AND RESTAURANTSI. TRANSPORT, STORAGE AND COMMUNICATIONJ. FINANCIAL INTERMEDIATIONK. REAL ESTATE, RENTING AND BUSINESS ACTIVITIESL. PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL

SECURITYM. EDUCATION

N. HEALTH AND SOCIAL WORKO. OTHER COMMUNITY, SOCIAL & PERSONAL SERVICE ACTIVITIESP. PRIVATE HOUSEHOLDS WITH EMPLOYED PERSONSQ. EXTRA - TERRITORIAL ORGANISATIONS AND BODIES.