Statistical Yearbook of the Czech Republic

 

Industry - methodology A

Contents
A. INDUSTRY

„Industry“ includes a set of enterprises turning out industrial products of a similar economic purpose, which are manufactured from the same or similar kinds of raw and other materials or through the same technological processes. It covers industrial activities of the whole enterprise. Where an enterprise manufactures products falling into several branches (industries), its classification is governed by the nature of the major part of its output. The Branch Classification of Economic Activities - OKEČ (a variant application of NACE, also referred to as CZ-NACE) splits the industry into three basic sections, Mining and Quarrying; Manufacturing; and Electricity, Gas and Water Supply, its more detailed breakdown including 17 subsections.

The basic reporting unit of industrial statistics is an enterprise (a legal or natural person in the position of entrepreneur), whose industrial activity prevails over all of its other activities and is classified under economic activity codes 10.10 0 to 41.00 2 of the CZ-NACE in force since 1 December 1993.



Notes on tables


Tables 16-1, 16-2 and 16-8 to 16-11. Key industry indicators

The data listed in Tables 16-1, 16-2 and 16-8 are taken from the processing of quarterly statistical questionnaires; they are preliminary data relating to a set of enterprises with 20 employees and over. Data in Table 16-1, concerning enterprises employing fewer than 20 persons and not included in the quarterly statistical survey, are estimated. Underlying sources for the estimate were observations on this size group from previous years, information in the Business Register, and developments occurring in related size groups included in the quarterly statistical survey. The proportion of enterprises in the size group 0-19 employees differs, depending on the individual indicators, and can be calculated from the data in the table.

On the other hand, the data in Tables 16-9 to 16-11 are final data taken from the processing of annual statistical questionnaires.

Average registered number of employees encompasses all categories of permanent, temporary and seasonal employees contracted for work by the employer. The number of workers (employed persons) includes registered employees of businesses and entrepreneurs.

Manual employees are employees classified to CZ-ISCO-88 major groups 6 to 9.

CZ-NACE-88 major group 1 employees include senior officials and managers. Included in the group are e.g. directors, deputy directors, head of departments etc. (provided at least one persons report to them).

Wages of employees refer to remuneration for work in cash or kind provided by employers to employees (kept on books of the enterprise).

Average gross monthly wage per employee classified to respective category of employees includes all incomes from employment (direct wages and salaries, personal bonuses, gratuities, shares in economic results, and compensations for wages) charged to be paid to registered employees in compliance with regulations on wages and salaries.

Sales of own goods and services are revenues from sale of own tangible and intangible output to external users.

Sales of goods for resale are revenues from sale of products bought to be sold in an unchanged state.

Outputs, incl. trade margin refer to sales of own goods and services, trade margin (the difference between revenues from the goods sold and costs of goods sold), change in inventories of own production, and capitalization of material, goods, services and fixed assets.

Production consumption – consumed purchases (value of consumed material and energy) and services (external services, costs of representation, and low-value property not considered by the accounting unit to be fixed assets).

Book value added is the difference between outputs, including trade margin, and production consumption.

Revenues are the sum of operating, financial and extraordinary revenues of the unit.

Expenses, total include operating, financial and extraordinary expenses for the reference period, except accrual-based income tax and transfer of the share in the economic result to partners.

Economic result is the difference between total revenues and total expenses for the reference period. It can be positive (profit) or negative (loss).

Profits-to-expenses ratio is the ratio of all profits for a CZ-NACE subsection to total expenses.

Inventories refer to the stock of purchased inventories (material, goods) and intra-enterprise inventories (work in progress, semi-finished products of own consumption, own goods, animals). Included in inventories can also be consumer durables worth less than CZK 40 000 as laid down by the Income Tax Act.

Gross acquisition of tangible assets refers to total expenses outlaid on the acquisition of fixed assets (by purchase, by own production activity, by acquiring the right to the result of own intellectual activity) together with the total value of fixed assets acquired free of charge, by transfer under relevant legislation or by transfer from personal to business use. Things that are put in use become fixed assets. Putting in use implies the provision of all technical functions required for the use and the meeting of all duties laid down by laws and regulations such as building, environmental, fire, and occupational safety ones.

Double-entry accounting concepts are used throughout the tables, although the tables also list data on enterprises keeping single-entry accounts. Individual data are avoided, which is indicated by the symbol of dot (.).

Output of a local activity unit also includes output passed to another local activity unit of the same enterprise.

Labour productivity index - since 1 January 2001 it has been calculated as the ratio of industrial sales index to number-of-employees index.


Tables 16-3 to 16-6. Industrial production index

The calculation of industrial production index (IPI) is based on monthly results of industrial production statistics on industrial products and on a two-stage weighting scheme. It makes the trends of industrial output more general by gradual aggregation of production indices of selected products-representatives (hereinafter referred to as the representatives). The individual indices on the production of selected representatives calculated from their output volumes in basic and current periods are aggregated to make up subindices of product groups by their shares-weights. The weights are determined by the share of the output of a representative in the output of the product group measured by gross turnover. This gives rise to an industrial production subindex for a given group of representatives. In step 2 of the gradual aggregation, the subindices for given groups of representatives are weighted by weights derived from their share in value added of the industry in total. This is actually a sample index representing the weighted arithmetic mean of production indices of selected representatives aggregated by a two-stage weighting scheme, always according to the following Laspeyres formula:



where, in step 1, Iq = volume subindex of the group,
iq = volume indices of individual products,
W = constant shares of product values in the value of group output,

in step 2, Iq = aggregate industrial production index,
iq = volume subindices of groups,
W = constant weights (shares of groups in value added of the industry).

The index is the indicator of monthly changes in „fixed“ value added, calculable for the whole and in the structure by according to 3-digit codes of corresponding groups of CZ-CPA. The fixed value added refers to the approximation of the contents of value added depending only on changes in volume and composition of the total industrial output, but not on changes in prices and contents of value added in individual industrial products.

The industrial production index is calculated using results of statistical surveys taken in reporting units (enterprises) with prevailing industrial activity and employing 20 persons or more, irrespective of their legal form.

The measurement of trends in industrial production relies on the calculation of monthly basic industrial production index (average month of 2000 = 100), from which monthly and cumulative year-on-year industrial production indices IPIs) are derived. In 1996-2000, the year-on-year industrial production index was used for the calculation of labour productivity index, too. In 2002 the CZSO started to calculate the IPI on the base and weighting scheme of the year 2000.

All the calculated IPIs are aggregated by section, subsection, division, group and class of CZ-CPA and also by main industrial grouping (MIG: energy, intermediate goods, capital goods, consumer durables, and consumer non-durables).


Table 16-7. Selected industry indicators: by territory

The data are taken from the annual product questionnaire on industrial production and from other indicators broken down by region filled in by enterprises with 20 employees and over and principally engaged in industrial activities.

The sum of the values of production for individual local and kind-of-activity units does correspond to the production of their enterprise due to the different classification of intra-enterprise turnover.


Table 16-12. Production of selected goods

The production of selected goods includes the entire production of a given good or of an aggregate thereof, as defined by respective code. It is an indicator of gross turnover, which also includes the volume of production passed over within the enterprise for further processing or for inclusion in inventories. The contents of the codes of goods (aggregates of goods) are specified on the CZ-CPA-based List of selected goods attached to the questionnaire to be filled in selected goods.


Data in tables are fully comparable with the data released in the statistical yearbooks of previous years.

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More detailed data are available in the following CZSO publications brought out according to the CZSO Catalogue of Publications 2005 (group 8 – INDUSTRY, CONSTRUCTION, subgroup 80 - Industry):
  • “Industry of the Czech Republic” (Czech-English) - monthly, on the 65th calendar day (IPI, employees, wages, sales)
  • “Industry of the Czech Republic – Revised Figures 2004” (Czech-English) - monthly data, June 2005
  • “Manufacture of Selected Industrial Products 2004” (Czech-English) – June 2005
  • „Vybrané finanční ukazatele průmyslu ČR v roce 2004 a v 1. pololetí 2005“ - July, November 2005
  • „Zaměstnanci a využití pracovní doby v průmyslu v roce 2004“ - September 2005
  • “Industry of the CR: Economic Results 2000-2003” (Czech-English) - June 2005
  • “Small and Medium-sized Enterprises in the CR: Selected Economic Results 2000-2003” (Czech-English) – June 2005.