SHORT-TERM INDICATORS OF INDUSTRY, 2025 – INDUSTRIAL PRODUCTION, PRODUCER PRICES AND INDUSTRIAL TURNOVER
NOTES ON METHODOLOGY
Sources and methods of data collection
The data sources are the statistical surveys entitled Monthly Survey on Industrial Production and Persons Employed (IND-1/KPS form), Monthly Survey on Industrial Turnover (IND-2/KPS form) and Monthly Survey on Producer Prices of Industrial Products (IND-3/KPS/M form), which were carried out by the Croatian Bureau of Statistics according to the Programme of Statistical Surveys of the Republic of Croatia for the reporting period, on the basis of the Official Statistics Act (NN, Nos 25/20, 155/23 and 124/25 – corr.).
Scope and coverage
Monthly surveys on industrial production (IND-1/KPS/M form) and industrial turnover (IND-2/KPS form)
The reporting units for the IND-1/KPS/M and IND-2/KPS/M surveys are all trade companies, other legal entities and tradesmen as well as parts thereof employing 20 and more persons engaged in the industrial production and/or industrial services in general as defined in NKD 20071) sections B, C and D (only division 35, excluding group 35.3) in the reference period, but according to their specific coverage in the case of turnover.
The statistical units in the IND-1/KPS/M and IND-2/KPS/M surveys are industrial enterprises and industrial local units of industrial and non-industrial enterprises. The coverage of the statistical units in the IND-1/KPS/M and IND-2/KPS/M surveys is based on the Address Book of Industrial Statistical Units, which has been established and is regularly updated by the Industrial Short-Term Business Statistics Unit. The data sources used for the updating of the Address Book are the Register of Business Entities data, the data obtained by other business surveys on industry and other available secondary sources.
The Monthly Survey on Producer Prices of Industrial Products (IND-3/KPS/M form)
The reporting units included in the IND-3/KPS/M Survey are selected enterprises (legal entities and tradesmen) that produce selected products as defined in the Nomenclature of Industrial Products – NIP, classified in the NKD 20071) (NN, Nos 58/07 and 72/07 – correction) activity 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 (only division 36).
In order to collect the data on producer prices on the domestic market, the IND-3/KPS/M Survey covers a representative sample of industrial products at the level of covered activity classes of NKD 2007, that is, all products that generated sales exceeding 3 million euro on the domestic market according to the results of the PRODCOM Survey on Industrial Production (IND-21/PRODCOM/G form), while the selection of enterprises has been done according to their share in the production of selected products.
1) Until 31 December 2027, in the IND-1/KPS/M, IND-2/KPS/M and IND-3/KPS/M surveys, the Decision on the National Classification of Activities, 2007 version – NKD 2007, will apply, pursuant to the transitional provision of Article 6 of the Decision on the National Classification of Activities, 2025 version – NKD 2025 (NN, No. 47/24).
Presentation of data series and comparability with the EU
Short term indicators on industry are presented here mostly in the form of indices (gross, working-day adjusted, seasonally and working-day adjusted or trend) or in absolute volume figures, that is, in physical measurement units. Statistical standards (concepts and definitions) include the Nomenclature of Industrial Products (NIPUM), on the basis of which data on industrial production are reported. The hierarchical levels of products from NIPUM contain the NKD 2007 levels (class level) and the KPD 2015 levels (subcategory level) and are harmonised with the EU classifications NACE Rev. 2 and CPA 2015.
Concepts and definitions used for the IND-1/KPS/M, IND-2/KPS/M and IND-3/KPS/M surveys are completely harmonised the EU concepts and definitions and especially with Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics, repealing 10 legal acts in the field of business statistics and Commission Implementing Regulation (EU) 2020/1197 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics.
Definitions and calculation method
Industrial production volume indices are the chain indices of the total industrial production calculated using the Laspeyres formula. The basis for the calculation of industrial production indices for the industry divisions of NKD 2007 are the data on the total quantities of finished industrial products defined by the Nomenclature of Industrial Products (NIPUM), expressed in the determined measurement units and weights for each NIPUM product. The weights represent a value added at factor costs for a unit of production (e.g., for 1 t of bread or 1 m3 of wood, etc.) by which a product is expressed in its physical form. The industrial production volume indices for the total industry (the NKD 2007 sections B, C and D – only division 35, excluding group 35.3) are calculated on the basis of indices for industrial divisions of NKD 2007 (05 – 35) and their structure, that is, the share of each division in the value added generated by the industrial section in question. The activity divisions 05 and 07 do not exist in the Republic of Croatia and are therefore not shown in tables for practical reasons.
In the Monthly Report on Industry, which serves for the calculation of the volume index of industrial production, the term finished product is used. It is defined as every product or service that reached a certain level of completion in the industrial production process within the reporting period and is listed in the NIPUM under a separate heading, code and measurement unit, irrespective of whether it results from principal, secondary or auxiliary (energy) activities of statistical units and irrespective of the ownership of production, that is, of whether it is a result of the production for own account or is under contract with a principal.
Calculation method. The industrial production volume indices for various NKD 2007 levels are calculated in two stages according to the Laspeyres formula. In the first stage, indices are calculated from quantity data on the production of individual products according to the NIPUM and an adequate weighting coefficient, which represents an estimated value added of individual products. In the second stage, all indices of groups and higher levels of NKD 2007 are weighted with the shares of the value added of each individual industrial activity across the levels of NKD 2007. In this way, the relative importance of individual levels of NKD 2007 is defined and, at the same time, different levels of coverage are levelled. The weighting coefficients of individual products of the NIPUM used in the calculation of the industrial production index represent the value added for each unit of production of a respective product. They are calculated on the basis of unit values of the PRODCOM Survey on Industrial Production (previously called the Industrial Annual Report) and are revised every five years.
MIGs 2009 aggregates. MIGs 20092) aggregates of industrial production volume indices are published at the level of five Main Industrial Groupings (MIGs) and are calculated by aggregating the groups or divisions under NKD 2007 sections B, C and D (only division 35, excluding group 35.3), according to the predominant end-use of all products (goods and services) within the same group or division. The calculation of indices for the five MIGs 2009 aggregates begins with the identification of the NKD 2007 groups according to the predominant end-use of products classified within the same NKD 2007 group, irrespective of possible individual differences among them. Since January 2009, new definitions have been applied to MIGs 2009 aggregates in the calculation of aggregate indices due to further harmonisation with the EU statistical standards.
The grouping of the NKD 2007 industrial divisions and/or groups into MIGs 20093) aggregates (codes AI, AE, BB, CD and CN) was done as follows:
AI Intermediate goods: the NKD 2007 divisions and groups: 07 – 09, 10.6, 10.9, 13.1 – 13.3, 16, 17, 20.1 – 20.3, 20.5, 20.6, 22 – 24, 25.5 – 25.7, 25.9, 26.1, 26.8, 27.1 – 27.4 and 27.9
AE Energy: the NKD 2007 divisions: 05, 06, 19 and 35 (excluding 35.3)
BB Capital goods: the NKD 2007 divisions and groups: 25.1 – 25.4, 26.2, 26.3, 26.5, 26.6, 28, 29, 30.1 – 30.4, 32.5 and 33
CD Consumer durables: the NKD 2007 divisions and groups: 26.4, 26.7, 27.5, 30.9, 31, 32.1 and 32.2
CN Consumer non-durables: the NKD 2007 divisions and groups: 10.1 – 10.5, 10.7, 10.8, 11, 12, 13.9, 14, 15, 18, 20.4, 21, 32.3, 32.4 and 32.9.
2) Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics regarding MIGs definitions.
3) In line with the Methodology of Short-Terms Business Statistics, the NKD 2007 division level means that all respective groups belonging to the same division are classified into the same MIGs 2009 aggregate.
Index of persons employed in industry
The index of persons employed in industry covers the NKD 2007 sections B, C and D (only division 35, excluding group 35.3), the same as the index of industrial production. It shows the dynamics of the number of persons employed. The index is defined by the number of persons employed who worked in the observation units in industrial activities only, regardless of whether they worked in production or at auxiliary general or management positions, but excluding those who worked in non-industrial activities in the same observation units. It is calculated according to the situation as at the end of the reporting month, irrespective of whether they were present at work that day or were on holiday, sick leave, etc. The data on the number of persons employed in industry are collected on a monthly basis through the IND-1/KPS/M form according to the NKD 2007 industrial groups (05.1 to 35.2) and for the total persons employed in all non-industrial activities.
Industrial labour productivity index
The industrial labour productivity index is calculated as a ratio between the industrial production volume indices and the persons employed indices for each NKD 2007 industrial division (05 to 35, excluding group 35.3) as well as for the total industry.
Index of producer prices of industrial products (on the domestic market)
The index of producer prices of industrial products is an important short-term indicator of the business cycle that shows monthly price changes in the industrial sector (NKD 2007 sections B, C, D and E – only division 36) on the domestic market. According to the EU concept, it is the principal economic indicator that can indicate inflationary changes before they reach the consumer.
The producer prices of industrial products are either the prices at which a producer sells products on the domestic market in the largest quantities, loaded free on a rail (truck) at a factory gate at the location of the producer or prices charged to another company by the producer. The selling price is increased for the amount of the compensation obtained by the seller and deducted for the amount of a discount, rebate, as well as the value added tax and excises.
Reference point. All producer prices have been recorded as transaction prices in effect on the 15th day of the month indicated. The prices at which a producer sells products on the domestic market in the largest quantities, loaded free on a rail (truck) at a factory gate at the location of the producer or the prices charged to another company by a producer are recorded.
Calculation method. The producer price indices of industrial products on the domestic market are calculated according to the Laspeyres formula for the different NKD 2007 levels.
The individual indices for each representative product are calculated from the data on prices by correlating the prices of the current period and prices of the base period (December of the previous year).
Weights. The structure based on the value of products sold at group level from the PRODCOM Survey on Industrial Production (IND-21/PRODCOM/G form) for two past years (t – 2) is applied. The weighting system is changed at the beginning of every reference year in relation to changes in prices.
Data presentation. The producer price indices of industrial products on the domestic market are presented for the total industry according to NKD 2007 sections and divisions and according to MIGs 2009 aggregates by the end use of products at the NKD 2007 group level.
The grouping at the group or division level of NKD 2007 according to the MIGs 2009 using alphabetic marks of abbreviations was done as follows:
AI Intermediate goods: the NKD 2007 divisions and groups: 07 (excluding 07.21) – 09, 10.6, 10.9, 13.1 – 13.3, 16, 17, 20.1 – 20.3, 20.5, 20.6, 22 – 24 (excluding 24.46), 25.5 – 25.7, 25.9, 26.1, 26.8, 27.1 – 27.4 and 27.9
AE Energy: the NKD 2007 divisions: 05, 06, 19, 35 and 36
BB Capital goods: the NKD 2007 divisions and groups: 25.1 – 25.3, 26.2, 26.3, 26.5, 26.6, 28, 29, 30.2, 32.5 and 33
CD Consumer durables: the NKD 2007 divisions and groups: 26.4, 26.7, 27.5, 30.9, 31, 32.1 and 32.2
CN Consumer non-durables: the NKD 2007 divisions and groups: 10.1 – 10.5, 10.7, 10.8, 11, 12, 13.9, 14, 15, 18, 20.4, 21, 32.3, 32.4 and 32.9.
ABBREVIATIONS
act. subst. active substance
0C degree Celsius
cm centimetre
cm2 square centimetre
CPA Classification of Products by Activity
CT Customs Tariff
dtex decitex (measuring unit for yarn; 1 gram per 10 000 metres)
DWT deadweight tonnage
EC European Community
eff. effective
EU European Union
excl. excluding
FINA Financial Agency
GJ gigajoule
g/m2 gram per square metre
GT gross tonnage
hl hectolitre
hr hour
incl. including
kg kilogram
KPD Classification of Products by Activity (national version)
kVA kilovolt-ampere
kW kilowatt
l litre
LED light-emitting diode
LPG liquefied petroleum gas
m metre
m2 square metre
m3 cubic metre
MIGs 2009 Main Industrial Groupings, 2009 version
mm millimetre
MWh megawatt-hour
NACE Classification of Economic Activities in the European Community
NGL natural gas liquids
NIPUM Nomenclature of Industrial Products
NKD 2007 National Classification of Activities, 2007 version
n. e. c. not elsewhere classified
n. e. s. not elsewhere specified
NN Narodne novine, official gazette of the Republic of Croatia
n. p. r. s. not put up for retail sale
PRODCOM products of the European Community
p. r. s. put up for retail sale
p/st piece/stick
sdt substance dry
subst. substance
t tonne
TEL tetraethyl lead
t 90% sdt tonne of substance 90% dry
TJ terajoule
TML tetramethyl lead
V volt
W watt
z data are not published for confidentiality reasons
‘000 thousand
SYMBOLS
- no occurrence
< less than
= equal to
> more than
≤ less than or equal to
≥ more than or equal to