The focus of this paper is an examination of concepts and statistics necessary to support the measurement ofreal outputof services industries. Although applied to the business sector of the Canadian economy, the issues raised may in fact be relevant for many other countries. The Canadian practice is judged with reference to the international guidelines and recommendations. General methodological issues of deflation are examined, particularly double deflation, extrapolation and rebasing. The perennial problems such as the deflation of imputed banking services, insurance, trade margins, etc. are analysed with a view to provide some tentative solutions thereof. Quality assessment of statistics and the criteria used for such an assessment are indicated to share our concern with the international colleagues facing similar problems.