Industrial turnover index
NOTES ON METHODOLOGY
Legal and methodological framework
Short-term business indicators on industry (the industrial turnover index) can be used to show the monthly market evolution of the products and services produced within industry.
Indices presented in these tables were calculated on the basis of data collected in the Monthly Survey on Industrial Production and Persons Employed (IND-1/KPS/M form), which is directly carried out by the Croatian Bureau of Statistics on the basis of the Official Statistics Act (NN, No. 25/20 and 155/23).
Industrial turnover indices on domestic market serve to measure monthly movements in industrial turnover/production sold realised by industrial enterprises/industrial local units on the territory of the Republic of Croatia, while on the other hand, industrial turnover indices on non-domestic market serve to measure monthly movements in turnover/production sold realised by industrial enterprises/ industrial local units on the non-domestic market, that is, outside the territory of the Republic of Croatia.
Concepts and definitions used in the IND-2/KPS/M Survey are harmonised with the EU concepts and definitions, and especially with the Regulation (EU) 2019/2152 of the European Parliament and of the Council and the Commission Implementing Regulation (EU) 2020/1197, on definitions of variables, list of variables and frequency of data compilation.
Scope and coverage
The IND-2/KPS/M Survey covers enterprises and parts thereof employing 20 or more persons employed and performing one or several industrial activities by definitions of activity coverage of the NKD 20071) (NN, Nos 58/07 and 72/07) for each indicator separately due to the differences in coverage according to legislation of EU.
Industrial turnover index covers only two industrial sections of the NKD 2007, that is, sections B Mining and quarrying and C Manufacturing, and their divisions 05 – 33.
A combined method of using two data sources is used to collect data: an administrative source (98.2% of units) and a statistical source in the way that data are collected directly from reporting units (1.8% of units), mostly from large enterprises where the reporting method via a web-based application (the so-called CAWI) is applied, i.e. reporting units fill in data directly onto the IND-2/KPS/M e-form, which is available on the web site of the Croatian Bureau of Statistics.
The time schedule for data collection for reporting units is between 1st and 15th day in a month for data from the previous reference month. Data on reporting units that are taken over from the administrative source (VAT) are collected 45 days after a reference month, at which point they are available to the Tax Administration and further processed in the Croatian Bureau of Statistics for statistical purposes.
1) The Decision on the National Classification of Activities 2007 ꟷ NKD 2007 will be used in the survey IND-1/KPS/M until 31 December 2027 in accordance with the transitional provision from Article 6 of the Decision on the National Classification of Activities 2025 ꟷ NKD 2025 (NN, No. 47/24).
INDUSTRIAL TURNOVER INDICES
Definition of indicators
Industrial turnover indices are chain indices calculated according to value data of the industrial turnover/sales at the level of main activity of industrial local units defined by the Croatian Bureau of Statistics. Indices were calculated by aggregation of industrial turnover value data/sales in the reporting month.
Calculation method
Industrial turnover indices for different levels of the NKD 2007 are calculated for indices at the group level and higher by weighting with the share in turnover value (sales) for defined industrial activities according to the NKD 2007 in respect with each indicator. Indices for MIGs 2009 aggregates2) are calculated in the same way as well as indices for domestic and non-domestic market. They are presented below.
2) The 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, as regards the definitions of Main Industrial Groupings (MIGs).
Industrial turnover
The value of total industrial turnover, that is, income from sales is the invoiced value of reporting local units for the products and services sold during the reference month. It corresponds to the market value of goods and services sold and delivered to third parties on domestic and non-domestic market in the reporting month.
The value of income from sales (turnover) in industry includes all transport and packing costs as well as taxes on invoiced goods and services of the reporting units, except the value added tax (VAT). Excluded are all reductions in prices, rebates and discounts as well as the value of returned packed goods, except cash price reductions. Price reductions, rebates and bonuses granted to customers later (e.g. at the end of the year) are also excluded.
The income from sales (turnover) of products and services to third parties residing in the same country, that is, to residents of the Republic of Croatia, is considered sale on domestic market, while income from sales on non-domestic market is considered sales to non-residents of the Republic of Croatia according to the criterion of the first destination of products or services and change of owner (irrespective of whether the goods or services for which the invoice was issued actually crossed the border or not).
MIGs 2009. aggregates
The calculation of the MIGs 2009. aggregates was done by grouping of the NKD 2007. activities at the level of groups or divisions within sections B and C (05.1 – 33.2) as follows, using alphabetic marks of abbreviations, as follows:
AI Intermediate goods: the NKD 2007. divisions and groups:
07 - Mining of metal ores (excl. 07.21 - Mining of uranium and thorium ores ),
08 - Other mining and quarrying,
09 - Mining support service activities,
10.6 - Manufacture of grain mill products, starches and starch products,
10.9 - Manufacture of prepared animal feeds,
13.1 - Preparation and spinning of textile fibres,
13.2 - Weaving of textiles,
13.3 - Finishing of textiles,
16 - Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials,
17 - Manufacture of paper and paper products,
20.1 - Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms,
20.2 - Manufacture of pesticides and other agrochemical products,
20.3 - Manufacture of paints, varnishes and similar coatings, printing ink and mastics,
20.5 - Manufacture of other chemical products,
20.6 - Manufacture of man-made fibres,
22 - Manufacture of rubber and plastic products,
23 - Manufacture of other non-metallic mineral products,
24 - Manufacture of basic metals (excl. 24.46 - Processing of nuclear fuel),
25.5 - Forging, pressing, stamping and roll-forming of metal; powder metallurgy,
25.6 - Treatment and coating of metals; machining,
25.7 - Manufacture of cutlery, tools and general hardware,
25.9 - Manufacture of other fabricated metal products,
26.1 - Manufacture of electronic components and boards,
26.8 - Manufacture of magnetic and optical media,
27.1 - Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus,
27.2 - Manufacture of batteries and accumulators,
27.3 - Manufacture of wiring and wiring devices,
27.4 - Manufacture of electric lighting equipment and
27.9 - Manufacture of other electrical equipment
AE Energy: the NKD 2007. divisions:
05 - Mining of coal and lignite,
06 - Extraction of crude petroleum and natural gas,
19 - Manufacture of coke and refined petroleum products,
BB Capital goods: the NKD 2007. divisions and groups:
25.1 - Manufacture of structural metal products,
25.2 - Manufacture of tanks, reservoirs and containers of metal,
25.3 - Manufacture of steam generators, except central heating hot water boilers,
26.2 - Manufacture of computers and peripheral equipment,
26.3 - Manufacture of communication equipment,
26.5 - Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks,
26.6 - Manufacture of irradiation, electromedical and electrotherapeutic equipment,
28 - Manufacture of machinery and equipment n.e.c.,
29 - Manufacture of motor vehicles, trailers and semi-trailers,
30.2 - Manufacture of railway locomotives and rolling stock,
32.5 - Manufacture of medical and dental instruments and supplies and
33 - Repair and installation of machinery and equipment
CD Consumer durables: the NKD 2007. divisions and groups:
26.4 - Manufacture of consumer electronics,
26.7 - Manufacture of optical instruments and photographic equipment,
27.5 - Manufacture of domestic appliances,
30.9 - Manufacture of transport equipment n.e.c.,
31 - Manufacture of furniture,
32.1 - Manufacture of jewellery, bijouterie and related articles and
32.2 - Manufacture of musical instruments
CN Consumer non-durables: the NKD 2007. divisions and groups:
10.1 - Processing and preserving of meat and production of meat products,
10.2 - Processing and preserving of fish, crustaceans and molluscs,
10.3 - Processing and preserving of fruit and vegetables,
10.4 - Manufacture of vegetable and animal oils and fats,
10.5 - Manufacture of dairy products,
10.7 - Manufacture of bakery and farinaceous products,
10.8 - Manufacture of other food products,
11 - Manufacture of beverages,
12 - Manufacture of tobacco products,
13.9 - Manufacture of other textiles,
14 - Manufacture of wearing apparel,
15 - Manufacture of leather and related products,
18 - Printing and reproduction of recorded media,
20.4 - Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations,
21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations,
32.3 - Manufacture of sports goods,
32.4 - Manufacture of games and toys and
32.9 - Manufacturing n.e.c.
Activity structure according to the NKD 2007.
The structure of industrial activities (division structure) has been calculated for the industrial turnover index on the basis of the turnover value (sales) by using the pure activity principle for the Republic of Croatia. It was calculated on the basis of annual statistical results of the Structural Business Survey carried out by the Croatian Bureau of Statistics and by processing annual administrative data taken over from Fina – the Annual Accounts of Industrial Enterprises, after which it was corrected by using the results of the PRODCOM Survey on Industrial Production. For the calculation of domestic and non-domestic market indices, the structure calculated on the basis of the PRODCOM Survey on Industrial Production is used. The division structure is updated at the beginning of every year for the calculation of indices of the current year.
Indices series presentation
Seasonal and working-day adjustment has been done by using the X13 ARIMA method on the monthly index series, which starts with the January 2000 index for the total industry and for the MIGs 2009 in respect of NKD 2007 activity coverage of each of the indicators. The effect of a random component in the seasonal adjustment process of time series of indices has been excluded.
Due to the character of the implemented seasonal adjustment method, the extension of the index series by adding new monthly observations for each new month could cause subsequent corrections of the already published seasonally and working-day adjusted indices and trend for several previous months.
Gross indices
The term “gross indices” indicates that indices are unadjusted for seasonal and working-day effects. In line with Eurostat’s recommendations and requirements for the industrial turnover index, they are not used for the interpretation of changes. Eurostat does not publish them, neither is it the practice in most Member States.
Seasonally and working-day adjusted indices
The term "seasonally and working-day adjusted" indices is used to indicate that gross indices are adjusted for both seasonal and working-day effects. In line with Eurostat’s requirements for short-term business indicators, the data that are compared to those of the previous month (that is, monthly comparison) are presented in a seasonally and working-day adjusted form of industrial turnover indices or growth rates calculated from them.
Working-day adjusted indices
The term "working-day adjusted indices" is used to indicate that gross indices are adjusted only for working-day effects in line with Eurostat’s requirements for short-term business indicators, while data compared to those of the same month of a previous year (that is, annual comparison) are presented in a working-day adjusted form of industrial turnover indices or growth rates calculated from them.
Trend indices
Time series of trend indices are released with each revision of seasonally adjusted data.
Abbreviations
CAWI computer-assisted web interviewing
EU European Union
Eurostat Statistical Office of the European Union
Fina Financial Agency
MIGs 2009. Main Industrial Groupings, 2009 version
NKD 2007. National Classification of Activities, 2007 version
NN Narodne novine, official gazette of the Republic of Croatia
PRODCOM PRODucts of the European COMmunity
VAT value added tax