Part of Wales’ tradeable services activity may be under-recorded in official export data, with implications for how the sector is understood and supported, a report suggests.
The report, Wales’ tradeable services sector: a mixed-methods study, indicates that Mode 5 trade — where services are embodied within exported goods — is not consistently captured in standard trade statistics.
The data shows that services such as design, research and development, and technical inputs are often integrated into manufactured products that are exported. The report indicates that, because these services are recorded within goods exports, their value is not separately identified as services trade.
Figures suggest that this creates a gap in how tradeable services activity is measured, particularly in sectors where services and manufacturing are closely linked.
The report indicates that this may result in an incomplete picture of the scale and role of services within Wales’ export economy, as some activity is effectively counted within goods rather than services.
It recommends further work to improve the measurement and recognition of Mode 5 trade, alongside closer alignment between policy areas covering services, manufacturing and trade.
The report also suggests that a clearer understanding of embedded services could support more targeted support for firms operating across both goods and services markets.
