Industry - Methodology (Basic year 2010)
Changes in methodology valid since 2013
Along with the release of results for January 2013, the base period for short-term statistics has 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 indices changes from the average of the year 2005 to the average of 2010.
- New weighting schemes have been used that are derived from results of the structural business statistics for the year 2010.
- In line with the Eurostat manual on short-term statistics, new weights have been used for recalculation of data back to the year 2009, which entails a revision of data for 2009-2012.
- Data for the years 2000-2008 were connected with updated results via conversion bridges by the annual overlap method. It is characteristic for this method that 2009/2008 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 2000-2008 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 2009 lose their additivity; it means that they cannot be aggregated by means of the current weighting scheme.
Along with the recalculation, a standard revision of data for the year 2012 has been made. At the same time, an extraordinary correction of data for the year 2002 has been made in the NACE 27 and related aggregations. Starting from January 2013, also a new version of the DEMETRA+ programme is used for seasonal adjustments.
Historical time series, which were published until the end of 2012 on the basis of the year 2005, are still available on the CZSO web pages in the archive of time series of the statistics of industry.
Methodology
I. Basic definition of CZ-NACE activities classified as industry
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 monthly statistical form “Prům 1-12”. 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, periodicity and deadlines for data provision are regulated by the decree on the programme of statistical surveys for a given calendar year.
IV. Key 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 key 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 2010 = 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 (except group 35.3).
Industrial orders refer to the value of ordered industrial products and industrial work (at contractual prices, excl. excise tax and VAT) which the producer has contractually confirmed by 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, 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 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 excl. other personnel expenses).
V. Retroactive 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. When data for February are processed, at the same time data for January are revised. Together with the revision of the first quarter of the relevant year also data for the previous year are revised. 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 the 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 comply with the above regulations.
VII. Seasonal adjustment
The TRAMO / SEATS method implemented in the DEMETRA programme is used for seasonal adjustment. This method belongs to the methods preferred by Eurostat for the purposes of seasonal adjustment of time series of economic indicators.
VIII. Methodological comparability with other surveys
The results of monthly surveys may differ from the results of quarterly or annual surveys.
Data of business statistics include only data for businesses, by which e.g. in the case of industry some slight differences arise 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 (Czech only)
Eurostat: Data series metadata according to the Council Regulation (EC) No. 1165/98:
Production in industry (A110 serie)
Turnover in industry (A120, A121 and A122 series)
Labour input in industry (A210, A220 and A230 series)
Eurostat: EU short-term statistics legistlation
Eurostat: EU short-term statistics methodology and manuals
Contact: Veronika Doležalová, tel.: (+420) 274054286, e-mail: veronika.dolezalova@czso.cz
