📊 Quarterly Selected Services Revenue Report: Q3 2025 – Economic Summary

The Quarterly Selected Services Revenue report, published by the U.S. Census Bureau, provides a comprehensive look at revenue trends across key service industries in the United States. For the third quarter of 2025, this report offers valuable insights into the health and direction of the service sector, which is a major driver of the U.S. economy. Understanding these trends is crucial for economists, policymakers, and anyone interested in the broader economic landscape.

Key Highlights from Q3 2025

  1. Overall Services Revenue Growth 📈
    • The total revenue for selected U.S. services reached $6,119.4 billion in Q3 2025.
    • This marks a 2.4% increase from Q2 2025 and a 7.2% rise compared to Q3 2024.
    • These figures are seasonally adjusted but not adjusted for price changes (i.e., not inflation-adjusted).
  2. Sector-Specific Performance 🏢
    • Utilities: Revenue was $207.4 billion, up 1.5% from Q2 2025 and 11.8% from Q3 2024. This sector showed robust year-over-year growth, possibly reflecting higher energy demand or price changes.
    • Transportation and Warehousing: Revenue hit $370.3 billion, up 2.7% from the previous quarter and 4.7% year-over-year. This suggests ongoing strength in logistics and goods movement.
    • Information: The sector generated $647.9 billion, a 0.9% quarterly increase and 4.2% annual growth, indicating steady demand for media, telecommunications, and data services.
    • Professional, Scientific, and Technical Services: Revenue reached $794.7 billion, up 3.5% from Q2 and 7.4% from Q3 2024, highlighting strong demand for specialized expertise.
    • Administrative and Support and Waste Management Services: Revenue was $354.4 billion, up 2.1% quarter-over-quarter and 4.5% year-over-year.
    • Educational Services: Revenue stood at $29.5 billion, a 1.9% increase from Q2 and 5.7% from Q3 2024, reflecting moderate growth in private education and training.
    • Health Care and Social Assistance: This sector continued to expand, with notable increases in individual and family services.
    • Accommodation: Revenue was $85.1 billion, down 0.3% from Q2 but up 1.7% from Q3 2024, indicating a slight seasonal dip but positive annual growth.
    • Other Services (except Public Administration): Revenue reached $268.0 billion, up 5.8% from Q2 and 11.0% from Q3 2024, showing strong momentum in miscellaneous services.
  3. Methodology and Data Quality 📝
    • The report is based on a sample of about 19,500 employer firms, covering a wide range of service industries.
    • Data are seasonally adjusted to account for regular fluctuations but are not adjusted for inflation.
    • Imputation rates (the share of data estimated rather than reported) vary by sector, with higher rates in industries like real estate (46%) and educational services (49%), which may affect data precision.
    • The Census Bureau revises previous quarters’ data as more information becomes available, ensuring ongoing accuracy.
  4. Economic Context and Implications 💡
    • The steady growth in services revenue aligns with broader economic trends, such as rising employment and consumer spending, as seen in related reports like the Business Employment Dynamics and Productivity by State.
    • The services sector’s resilience is a positive sign for the U.S. economy, especially given its large share of GDP and employment.
    • Variations across sectors highlight shifting consumer and business priorities, with technology, logistics, and professional services leading growth.

Summary

The Q3 2025 Quarterly Selected Services Revenue report shows that the U.S. service sector continues to expand, with total revenue up 2.4% from the previous quarter and 7.2% year-over-year. Key sectors like utilities, transportation, information, and professional services are driving this growth, reflecting ongoing demand for essential and specialized services. While some sectors, such as accommodation, saw minor quarterly declines, the overall trend is positive. The report’s methodology ensures robust, seasonally adjusted data, though users should be mindful of imputation rates in certain industries. These findings suggest a healthy and dynamic service sector, supporting broader economic stability and growth in the United States.

References:

 Quarterly Selected Services Revenue, U.S. Census Bureau

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