Short-term statistics - Industry - Methodology

 

Changes in methodology valid since 2021

Since the publication of January 2021 data, the presentation of data on sales from industrial activity and on new industrial orders was changed. Now, adjusted data are preferred, as in case of industrial production data. Year-on-year growth rates are published working-days adjusted. Additionally, month-on-month and quarter-on-quarter indices are adjusted for seasonal effects.

Complete time series of sales from industrial activity and new industrial orders back to the year 2000 are available in CZSO Public database.


Changes in methodology valid since 2019

Along with the publication of results for January 2019, a model used for adjustment of the time series of industrial production index was changed. An indirect adjustment method is used now. It is applied to the lowest source aggregates of the industrial production index; a weighted average of the adjusted source data is made to get adjusted higher aggregations.

To maintain the comparability of published data, all the time series were recalculated back to 2013.

In the News Release on Industry, the text related to the industrial production index has been modified; now, data adjusted for working days are emphasised. Concurrently, the way of publication of data on employment changed; instead of numbers (absolute values) for a sample of industrial enterprises with 50+ employees, only year-on-year indices for the entire statistical population of enterprises principal (prevailing) activity of which is industry are published.
 

Changes in methodology valid since 2018

Along with the release of results for January 2018, the base period for short-term statistics changed, which is a standard step made every five years and co-ordinated within the European Statistical System. In the case of statistics of industry the change applies to the following indicators: industrial production index, sales from industrial activity, and new industrial orders.

Consequences of the change:

  • The base period for fixed-base changed from the average of the year 2010 to the average of the year 2015.
  • New weighting schemes have been used that are derived from results of the structural business statistics for the year 2015.
  • New price indices have been used for conversion to constant prices (also with the base year 2015).
  • In line with the Eurostat manual on short-term statistics, new weights have been used for recalculation of data back to the year 2014, which entails a revision of data for 2014–2017.
  • Data for the years 2000–2013 were connected with updated results via conversion bridges by the annual overlap method. It is characteristic for this method that 2014/2013 year-on-year indices for the entire year cumulation remain after the connection the same as at the original data and the course of the series for the years 2000–2013 does not change, i.e. after the connection the year-on-year indices remain unchanged. However, a consequence of the change is that historical series before the year 2014 lose their additivity; it means that they cannot be aggregated by means of the current weighting scheme.

Historical time series, which were published until the end of 2017 on the basis of the year 2010, are still available on the CZSO web pages in the archive of time series of the statistics of industry.
 

Methodology of short-term statistics of industry
 

I. Basic definition of economic activities classified to industry according to the CZ-NACE classification

Within the CZ-NACE classification, activities under the sections B (Mining and quarrying), C (Manufacturing), D (Electricity, gas, steam and air conditioning supply), and E (Water supply; sewerage, waste management and remediation activities) are considered to be industrial activities. The scope of provided data depends on the current regulations of Eurostat concerning short-term statistics, which explicitly exclude some activities from short-term statistics (e.g., section E large part of the contents of which did not belong to industry under the former CZ-NACE classification). With respect to the requirements, industrial short-term statistics covers only sections B, C, and D unless otherwise stated for particular indicators.
 

II. Data source

The calculation of monthly indicators of short-term statistics is based on the results of processing of the “Prům 1-12” monthly statistical form with utilisation of administrative data sources. Quarterly labour indicators (numbers of employees/persons employed, average wages) are made based on the monthly statistical form “Prům 1-12”, quarterly statistical form “P 3-04” and using administrative data sources. Specimens of statistical forms are available at http://apl.czso.cz/pll/vykazy/pdf1 (Czech only).
 

III. Population and sample selection

Reporting enterprises are taken from the Statistical Business Register on the basis of their principal (prevailing) economic activity. The sample consists of the sample part and exhaustive part. In general, the contents and purpose of statistical surveys, set of reporting units, type of statistical survey, its periodicity, and deadlines for data provision are regulated by the decree on the programme of statistical surveys for a given calendar year.
 

IV. An overview of basic indicators published

The industrial production index (IPI) measures the output of industrial economic activities and of the industry in total, adjusted for price effects. It is a basic indicator of industrial short-term statistics. In a large part the calculation is based on sales of own goods and services at constant prices; in certain economic activities the production volumes of products-representatives are used to characterize the development. The index is primarily calculated as a monthly fixed-base index (average month of 2015 = 100) at the level of two-digit CZ-NACE divisions. Weights derived from the structure of value added in the base year are used for higher-level aggregations (up to sections, main industrial groupings, and industry in total). From the fixed-base indices the following are further derived: year-on-year indices and cumulations over time, if any (quarterly, semi-annual, annual cumulations). In compliance with regulations of Eurostat the industrial production index covers CZ-NACE sections B, C, D (excluding group 35.3).

Sales from industrial activity represent only sales of goods and services classified in the CZ-CPA 05-39, i.e. sales adjusted for secondary non-industrial activities of an enterprise. They are measured at current prices of the reference year.

Industrial orders refer to the value of ordered industrial products and industrial work (at contractual prices, excluding excise duty and VAT) which the producer has contractually confirmed by its customers, irrespective of the commencement and period of work. Also included is the value of production for a particular customer known in advance, even though no written contract has been signed. Order statistics is a part of the short-term business statistics. It means that all order volumes of industrial goods and services are measured for an enterprise in total which is classified by its principal activity to a given CZ-NACE activity. Thus, orders are not measured and published according to specific industrial goods and services. The volume of orders thus excludes values of orders of purchased goods for resale without further processing. Order volumes are measured only in selected CZ-NACE divisions (13, 14, 17, 20, 21, 24, 25, 26, 27, 28, 29, and 30) with predominantly customised production, long-term production cycle and full order books. The indicator of new orders received in the reference period is primarily measured.

The average registered number of employees includes all permanent and temporary employees having a contract of employment with the reporting unit, irrespective of the activity they perform. In industrial CZ-NACE activities the registered number of employees excludes agency workers, who are measured within the CZ-NACE 782.

The average number of persons employed includes besides the registered employees also persons working under various contracts for work and other employed who participate in work in an enterprise and do not have a contract of employment, especially working owners of enterprises. Unlike the registered number of employees, this indicator is the same as for methodology with the indicator of the number of persons employed as required by EU regulations for the area of short-term statistics.

The average monthly wage refers to all income from work (basic wage, personal bonuses and assessment, bonuses and gratuities, profit-sharing bonuses and wage compensation) charged to registered employees according to relevant wage and salary guidelines (it is the gross wage excluding other personnel expenses).
 

V. Retrospective corrections, revisions

Data revisions and retroactive corrections are governed by the revision calendar, which results from the CZSO revision policy. In the case of short-term monthly statistics, revisions are made as a standard together with the data processing for the first month after the calendar quarter is finished. Should serious input data corrections be made, which have a significant impact on the results published, extraordinary revisions outside the revision calendar are permissible.
 

VI. International comparability

Short-term statistics in the European Union are provided for by the Regulation (EC) No 1158/2005 of the European Parliament and of the Council of 6 July 2005 amending Council Regulation (EC) No 1165/98 concerning short-term statistics. The classification of economic activities used, including impacts on short-term statistics, is also provided for by the Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending the Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains. All the published short-term indicators are compiled in accordance with the above legal regulations.
 

VII. Seasonal adjustment

Seasonal adjustment is used for industrial production index applying the TRAMO / SEATS method implemented in the JDEMETRA+ programme. Since January 2019, so-called indirect seasonal and calendar adjustment method is applied that replaced direct method used before. Indirect method is based on weighted average of the adjusted source data, applying the adjustment on aggregates of industrial production index of the lowest level only. The TRAMO / SEATS method as well as the method of indirect adjustment belongs nowadays to those preferred also by the Eurostat methodological guidelines on seasonal adjustment of economic indicators time series.

In the current model of seasonal adjustment, a special regressor in division C29 is used. It allows to eliminate the seasonal impact of vacations of significant automotive manufacturers. By the use of this regressor, the aggregates for the manufacturing industry and industry as a whole are adjusted as well.

 

VIII. Methodological comparability with other surveys

Results of monthly surveys may differ from results published from quarterly or annual surveys.
Data of business statistics include only data for businesses, by which in the case of industry some slight differences arise e.g. in comparison to the labour statistics (employment, wages).

 

IX. Types of released data

Monthly survey results are published:

1) in the Industry news releases – monthly
2) in time series on the CZSO web page – Time Series
3) sent to Eurostat – Short-term business statistics
4) in other documents on the Internet
 

X. Additional methodological information and external links

Detailed methodology of the IPI calculation
Eurostat: Data series metadata according to the Council Regulation (EC) No 1165/98:
Production in industry (A110 series)
Turnover in industry (A120, A121, and A122 series)
Labour input in industry (A210, A220, and A230 series)
IPI - Weights 2015
Eurostat: EU short-term statistics legislation

Eurostat: EU short-term statistics methodology and manuals

Contact: Mgr. Veronika Doležalová, tel. +420 274054286, e-mail: veronika.dolezalova@czso.cz

 


Industrial production


Period: September 2021
Y-O-Y Increase/Decrease(%), Working day adjusted: -4,0
Release Date: 08 November 2021