Industry of the Czech Republic
Methodology |
Contents |
i n t r o d u c t i o n into m e t h o d o l o g y
for Basic Indicators of Short-term Statistics on Industry
(NACE Sections C, D, E)
Part A The Industrial Production Index is based on monthly results of statistics on industrial production and on a two-stage weighting pattern. It makes the trends of industrial production more general by gradual aggregation of production indices of selected products-representatives (hereinafter referred to as the representatives). The individual production indices of selected representatives calculated from their output volumes in base and current periods are aggregated into partial indices of product groups by their shares - weights. The weights are determined by the share of the output of a representative in the output of a given product group measured by gross turnover. This results in a partial industrial production index for a given group of representatives. In step 2 of the gradual aggregation, the partial production indices of a given group of representatives are weighted by weights derived from their share in value added of industry in total. This is actually a sample index representing the weighted arithmetic mean of production indices of selected representatives aggregated using a two-stage weighting pattern, always according to the following Laspeyres formula:
Iq = (iq . W) : W
where, in step 1,
Iq = partial volume index of a group,
iq = volume indices of individual products,
W = constant shares of product values in the value of group production,
in step 2,
Iq = aggregate industrial production index,
iq = partial volume indices of groups,
W = constant weights (shares of groups in value added of industry).
This index is the indicator of monthly changes in "fixed" value added calculable for the whole and in the structure by the 3-digit code of a corresponding group of Classification of Products by Activity (CZ-CPA). Under fixed value added is meant the approximation of the contents of value added depending only on changes in volume and composition of the total industrial production, but not on changes in prices and the contents of value added in individual industrial products.
All the mentioned short-term monthly indicators on industrial production are calculated using the results of statistical surveys among enterprises with industry as their principal activity and employing 20 or more people, irrespective of the legal form.
Since 2002, the CZSO has been calculating the industrial production index on the basis of the year 2000.
All the IPIs released since January are preliminary. Final revised data (IPIs) for 2003 will be put out in the CZSO‘s publication „Industry of the Czech Republic - Revised Figures 2003” (code 8002-04) in June 2004.
Part B The other basic indicators of short-term statistics rest on monthly results of statistics on sales, number of employees, wages in enterprises with industry as their principal activity and employing 20 or more people, irrespective of the legal form. Enterprises with 100 employees or more are covered all to calculate basic indicators; a sample is used for enterprises with 20-99 employees and grossing up to the universe is made.
Sales in industry are measured at current prices and a composite price index is used to deflate them. The index comprises an industrial producer price index related to the domestic market and an export price index of manufactured goods broken down by CPA. From 1 January 2001, the composite price index (according to the Laspeyers formula) has been derived on the weighting scheme of 1999 related to average prices of 2000.
The average number of registered employees encompasses all categories of permanent, casual or temporary employees contracted to work for the enterprise.
The average monthly wages per employee include all incomes from employment (direct wages, personal bonuses, gratuities, shares in economic results and remuneration for time not worked) accounted to registered employees in compliance with appropriate regulations on wages (this applies to gross wages).
From 1 January 2001 the productivity of labour is calculated as the industry sales index over the index of the average number of registered employees.
From January 2001 the Czech Statistical Office calculates industrial production indices (IPI) and other indicators of short-term industry statistics, besides present aggregations (4-digit classes, 3-digit groups, 2-digit divisions, subsections and sections), also in a newly implemented desaggregation by five Main Industrial Groupings (MIG). MIG are represented by the classification of industrial production by the main use of this production, i.e. by industrial production predominantly intended for Intermediate Goods (MIGIG), for Capital Goods (MIGCG), for Consumer Durables (MIGCD), for Consumer Non-Durables (MIGCND) and Energy (MIGE). The Main Industrial Groupings are defined using 3-digit groups of CZ-CPA, or CZ-NACE and comply with Eurostat methodology of 2000.
In this context note please a different way of aggregation at calculating IPI and sales index (SI), as well as related indicators of industry short-term statistics (index of wages, index of the number of employees). While IPI published in Part A is built on the results of statistics on individual products and industry services, SI and related indices published in Part B rely on results of statistics on an enterprise as a whole.
IPI for Main Industrial Groupings is a weighted arithmetic mean of indices of production of individual industrial products and services grouped by CZ-CPA.
SI and related indicators of short-term industry statistics are calculated using gradual aggregation of appropriate indicators in absolute values for an enterprise in total, which is classified in a given CZ-NACE according to its principal activity.
Part C Job orders statistics is part of enterprise short-term statistics. This implies that all volumes of job orders concerning manufactured goods and services are measured as a total for an enterprise classified to its respective branch (CZ-NACE) according to its prevailing activity. Hence, the job orders are not measured or published broken down by individual manufactured goods or services, and their volumes can thus be related only to enterprise short-term statistics indicators – i.e. especially to revenues from sales of own manufactured goods and services.
The volume of job orders does not include job orders of goods purchased for resale in the same condition as received. The job orders are valued at agreed prices, free of VAT and consumer tax.
The volumes of job orders are measured in enterprises of selected CZ-NACE divisions that mostly produce to order in a rather long production cycle and have a rather large supply of orders. They are mostly enterprises producing capital goods, intermediate goods and consumer durables.
Seasonally non-adjusted year-on-year, monthly and month-on-month indices of new job orders (current prices, for 2002) are published for the first time, along with indices of industrial activity sales for selected industrial groupings.
Part D The method TRAMO /SEATS implemented in the DEMETRA programme is used for seasonal adjustment. This method belongs to the most preferred methods of EUROSTAT for seasonal adjustment of time serials of economic indicators. The table lists month-on-month seasonally adjusted indice of chosen indicators.
