Short-Term Indicators of industry – Industrial Production, Producer Prices and Turnover of Industry
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 and 155/23).
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 the NKD 2007 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 are based on the Address Book of Industrial Statistical Units, which was 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 Statistical Business Register 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 for the IND-3/KPS/M survey cover selected enterprises (legal entities and tradesmen) that produce selected products as defined in the Nomenclature of Industrial Products – NIP. classified in the NKD 2007 (NN, Nos 58/07 and 72/07) 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).
The collection of the data on producer prices on the domestic market on the IND-3/KPS/M survey covers a representative sample of industrial products at the level of the covered activity classes of the NKD 2007, that is, all the products whose sale on the domestic market exceeded 2 000 euro 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.
Index of industrial production, stocks and persons employed
Until the end of 1996, short-term statistics on industrial production and their inputs were collected through the Monthly Report on Industry (IND-1 form), according to the structure and definitions of industry from the Uniform Classification of Economic Activities (UCEA). In the period from 1997 to 2004 the data on monthly industrial production were collected on the IND-1A form by using the Methodology for Monthly Industrial Report IND-1 (NN, No. 18/97), including the first version of the Nomenclature of Industrial Products – NIPUM. Hierarchical levels of the NIPUM (1997) contained the same levels of the first version of the NACE (1995) and KPD 1996, which were harmonised with the EU classifications NACE Rev. 1 and CPA 1996. The data for the year 2004 were collected using the same standards (IND-1/MPS form), so they are completely comparable, while the collection has been done according to the updated version NKD 2007, which is harmonised with the EU version of the NACE Rev. 2, starting with January 2009.
Producer price index of industrial products
The monthly IND-3/KPS/M survey, as compared to the previous C-41 survey, is a revised survey that was changed by extending its coverage and by changing its content, deadlines and delivery of the data on producer prices of industrial products as well as other concepts and definitions. It was done mostly due to the harmonisation with the EU Regulation on Short-Term Statistics1) and in order to start data collection on the producer prices on the non-domestic market with the final aim of calculating the composite indicator – the industrial output price index, in order to meet the EU requirements.
Producer price indices on the domestic market are calculated on the basis of the data collected through the Monthly Survey on Producers’ Prices of Industrial Products (IND-3/KPS/M form). They are consistent with the previously published producers’ price indices on the domestic market calculated on the basis of the Survey on Producers’ Prices of Industrial Products (C-41 form), which was carried out until the end of 2009 and published in the statistical report No. 1425 entitled Prices, 2009, issued by the Croatian Bureau of Statistics, as it was also the case in previous years.
Presentation of data series and comparability with the EU
Short term indicators on industry are presented here mostly in the form of indices (gross, seasonally 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 for recording the data on the total industrial production for short-term industry statistics. Hierarchical levels of the 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 the 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 the 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.
1) 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 of 27 November 2019 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 and are calculated by using the Laspeyres formula. The basis for the index calculation for the industry divisions of the NKD 2007 are the data on the total quantities of industrial finished 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 by compiling the indices for industrial divisions of the 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 in use. It is defined as every product or service that reached a certain level of completion in the industrial production process and is listed in the NIPUM by a separate heading, code and measurement units, irrespective of whether it results from principal, secondary or auxiliary (energy) activities of statistical units and irrespective of the ownership of productions, that is, whether it is a result of the production on own account or is under contract with principal.
Calculation methods. The industrial production volume indices for various NKD 2007 levels are calculated in two stages according to the Laspeyres formula. At the first stage, indices are calculated from the data on the production quantity of individual products according to the NIPUM and an adequate weighting coefficient that represents an estimated value added of individual products. In the second step, all indices of groups and higher levels of the NKD 2007 are weighted with the shares of value added of each individual industrial activity across the levels of NKD 2007 That 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 the respective product. They are calculated on the basis of the unit values of the PRODCOM Survey on Industrial Production (previously called the Industrial Annual Report) and are revised every five years.
The weighting structure of industrial activities (division structure) according to the NKD 2007 was calculated on the basis of the gross value added at factor costs by pure activity principle, using annual results of the Structural Business Survey on Industry (SPS-ind form) and administrative sources (FINA) in order to cover industrial activities of micro-sized enterprises. Finally, they are corrected by the industrial production volume indices. As a rule, the division structure is updated at the beginning of each year for the calculation of indices in the current year.
MIGs 2009 aggregates. MIGs 20091) aggregates of industrial production volume indices are published at the level of the five Main Industrial Groupings (MIGs) and are calculated by the aggregation of the groups or divisions under the 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 NKD 2007 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 aggregations in the calculation of aggregated indices due to further harmonisation with the EU statistical standards.
Grouping of the NKD 2007 industrial divisions and/or groups (codes AI, AE, BB, CD and CN) into MIGs 20092) aggregates 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) In line with the Methodology of Short-Terms Statistics, the NKD 2007 division level means that all respective groups belonging to the same division are classified into the same MIGs 2009 aggregate.
Seasonal and working-day adjustment method of time series
Seasonal and working-day adjustment has been done by using the X13 ARIMA method on the monthly index series, which starts with the January 1998 index for the total industry (sections B, C and D, excluding group 35.3 of the NKD 2007) for the divisions of the NKD 2007 as well as for the MIGs 2009. 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.
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, month-on-month comparison) are presented in a seasonally and working-day adjusted form of industrial production indices or growth rates calculated from them.
Working-day adjusted indices
The term "working-day adjusted indices" indicates that gross indices are adjusted only for working-day effects in line with the Eurostat’s requirements for short-term business indicators, while data compared to those of the same month of a previous year (that is, year-on-year comparison) are presented in a working
-day adjusted form of industrial production indices or growth rates derived from them.
Gross indices
The term “gross indices” indicates that indices are unadjusted for seasonal and working-day effects. In line with the Eurostat’s recommendations and requirements for the industrial production volume index, they are not used for the interpretation of the movement of the industrial production volume. Eurostat does not publish them, neither is it the practice in the most Member States. They are presented here just for the information on the activity structure for users’ needs and the continuity of publishing of the industrial production volume indices in the Republic of Croatia.
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 evolution of employment. 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 on auxiliary general or on management activities, but excluding those who worked in non-industrial activities in the same observation units. They are 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, on 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 questionnaire according to the NKD 2007 industrial groups (05.1 to 35.2) and for the total persons employed in all non-industrial activities of the same observation unit.
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.
Industrial turnover index
The industrial turnover index is a short-term business indicator on industry that shows the demand movements on the domestic and the non-domestic market for the industrial products and services produced within industry and within the territory of the Republic of Croatia.
The industrial turnover indices cover only two industrial sections of the NKD 2007, that is, sections B Mining and quarrying and C Manufacturing and their divisions 05 – 33. They have been calculated from the value data of the industrial turnover (sales) obtained through the IND-2/KPS/M survey at the level of the main activity of industrial local units defined by the Croatian Bureau of Statistics.
The industrial turnover indices are presented as gross indices, working-day adjusted indices, seasonally and working-day adjusted indices and trend, on a permanent basis, starting with 2000 when the data collection and calculation for this index actually started. They are presented as the total industrial turnover on the domestic and the non-domestic market and according to MIGs 2009 aggregates.
Total industrial turnover/income from sales is the invoiced total value of the 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 the domestic and the non-domestic market and produced by domestic producers on the territory of the Republic of Croatia.
Industrial turnover according to MIGs 2009 aggregates
The calculation of the MIGs 2009 aggregates was done by grouping of the NKD 2007 activities at the level of divisions or groups (05.1 – 33.2) within sections C and D according to coverage of this indicator, 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 and 19
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.
Turnover on domestic and non-domestic market. The sale on the domestic market is considered to be the income from the sales (turnover) of products and services to third parties residing in the same country, that is, to the residents of the Republic of Croatia, while the sales to non-residents of the Republic of Croatia, according to the criterion of the first destination of products or services and the change of owner (irrespective of whether the goods or services for which the invoice was issued actually crossed the border or not) is considered to be the income from sales on the non-domestic market.
Index of producer prices of industrial products (on 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). According to the EU concept, it is a 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 at the domestic market in the largest quantities, loaded free on a rail (truck) at a factory gate at the location of the producer or a price charged to another company by a 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, 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 at 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. 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 years past (t – 2) is applied. The weighting system is changed at the beginning of every reference year in relation to changes in prices.
The current weighting system is based on 2015. The weighting system is changed every five years, while weights are partly corrected every year in relation to the changes in prices.
Data presentation. The producer price indices of industrial products on the domestic market are presented for the total industry according to the 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 the NKD 2007 according to the MIGs 2009 by 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
A ampere
act. subst. active substance
Ah ampere hour
0C degree Celsius
CD compact disc
ce/el number of elements
cg centigram
cm centimetre
cm2 square centimetre
conn. connection
CPA Classification of Products by Activity
CT Customs Tariff
dtex decitex (measuring unit for yarn; 1 gram per 10 000 meters)
DWT deadweight tonnage
EC European Community
eff. effective
EPR ethylene propylene rubber
EU European Union
excl. excluding
FINA Financial Agency
GJ giga-joule
g/m2 gram per square metre
GT gross tonnage
hl hectolitre
hr hour
incl. including
K kelvin
kg kilogram
KPD Classification of Products by Activity (national version)
kV kilovolt
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
min minute
mln million
mm millimetre
Mpa megapascal
MWh megawatt hour
NACE Classification of Economic Activities in the European Community
NCR carbonless copy paper
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
pa number of pairs
PET polyethylene terephthalate
PRODCOM products of the European Community
p. r. s. put up for retail sale
p/st piece/stick
PVC polyvinyl chloride
sdt substance dry
subst. substance
t tonne
TEL tetraethyl lead
t 90% sdt tonne of substance 90% dry
TJ tera-joule
TML teramethyl 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