Economy Terms

A range of terms are used when describing an economy and the industries within it and these can help an individual when planning their career development.

Economy: The production and consumption of goods and services within a country.
[Sector / Section > Division > Group > Class > Sub-class]

• Sector: A category into which industries which share similar general characteristics and features are grouped.
• Section: The name used for a ‘Sector' in the Standard Industry Classification (SIC), of which there are 21.
• Industry: A category which is not in the SIC classification. It is sometimes referred to as sub-sector, or more commonly also an alternative for ‘Sector' / ‘Section', often being termed an industry sector.
• Division and Group: “The main criteria applied in delineating groups and divisions … concern the following characteristics of the activities of production units:
• the character of the goods and services produced
• the uses to which the goods and services are put, and
• the inputs, the process and the technology of production.”
There are 88 Divisions.
• Class and Sub-class: A category which groups activities together according to the importance of the activity to the economy and where a similar production process is involved, also using similar technologies.
• Market: A customer group requiring services of an industry.
• Market Segment: A sub-set, or smaller grouping, within a market, which is often defined by businesses to help understand their business and to support their sales.

The 21 sectors of the UK economy are often grouped into major industry categories:

Primary industries
The area of the economy that makes direct use of natural resources.
• Agriculture, forestry and fishing.
• Mining and quarrying.

Secondary industries
This area either manufacture a usable end product, are involved in construction, or manage energy or water utilities.
• Manufacturing.
• Energy utilities (Electricity, gas, steam and air conditioning supply).
• Water utilities (Water supply; sewerage, waste management and remediation activities).
• Construction.

Tertiary industries
The largest in the UK, being called the service sector.
• Wholesale and retail trade; repair of motor vehicles and motorcycles.
• Transportation and storage.
• Accommodation and food services.
• Administration and support services activities.
• Real estate activities.
• Public administration and defence; compulsory social security.
• Human health and social work activities.
• Arts, entertainment and recreation.
• Other service activities.
• Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use.
• Activities of extraterritorial organisations and bodies.

Quarternary industries
This area is known as the knowledge sector.
• Information and communication.
• Financial and insurance activities.
• Professional, scientific and technical activities.
• Education.

The maintenance of sports surfaces and facilities, including golf courses, is included in the Section N: ‘Administration and support services activities' (Division 83 > Group 81.3 > Class 81.30 ‘Landscape service activities'), whilst the management (i.e. operation) of the sports facilities is included in the Section R: ‘Arts, entertainment and recreation' (Division 93 > Group 93.1 > Class 93.11). The activities of sports clubs, “which, whether professional, semi-professional or amateur clubs, give their members the opportunity to engage in sporting activities”, including golf clubs is Class 93.12.

(Main source: ‘UK Standard Industrial Classification of Economic Activities 2007 (SIC 2007)', ONS, accessed 27/11/2021)