introducing nace rev 2 in eu short-term business statistics

10 September 2009 OECD STESEG

Introducing NACE rev 2 in EU Short-term business Statistics

Brian NewsonHead of STS unit Eurostat


Coverage of Short-term business Statistics

STS Regulation 4 annexes:A. IndustryB. ConstructionC. Retail tradeD. Other services


A. Industry

Industrial production Turnover New orders received Employment (number, hours worked, wages) Output prices Import prices

All broken down by NACE except import prices CPA

4-digit for big countries, 2-digit for smaller.


B. Construction

Production (Building / civil engineering) Building permits Employment (number, hours worked, wages) Construction costs (materials, labour costs)

Just NACE F Construction.


C. Retail trade

Turnover current prices Turnover volume (deflated)

– Breakdown food / non-food, 6 more detailed product categories

Employment – (number since 1998, hours worked and wages from 2010)


D. Other services

“Other services” defined by NACE list (covers most market services, except banking, insurance, R&D)

Turnover (current prices) Output prices (SPPI) – shorter list of NACE Employment

– Number since 1998, hours worked and wages from 2010

Classification basically 2-digit NACE.


Introducing NACE rev 2 into Regulations

NACE rev 2 as classification Regulation 2006 Specified changeover dates for each statistical area Changeover STS first monthly data for January

2009 Or Q1 2009 for quarterly indicators Note Structural business statistics 2008 data late

2009 National accounts 2011.


Preparatory steps in STS

STS Regulation modified to fix exact target (coverage of industries and level of detail)

2007-2008 task force which made recommendations– Micro methods (reclassifying enterprises)– Macro methods (matching old and new NACE headings)

Benefitted non-EU experience Quarterly monitoring reports on progress in countries “Backcasting” Regulation – back to at least 2000 Compromise between

– needs of users and seasonal adjustment– reliability of backcasting.


New base year 2005

At the same time as introducing new NACE modify weights from “2000” to 2005

Every five years such rebasing an exercise in itself Complicated by the fact Structural Business Statistics

will only adopt NACE rev 2 for the data of 2008 in late 2009.

So 2005 weights had to be estimated by mapping old NACE into new.

Weights apply within countries to aggregate up to total industry and between countries to calculate EU total indices.


Work in countries

Countries had most of the work. Generally very successful. Congratulate countries. Most data for January 2009 on time (or 3-4 days late) February transmission all normal. Few areas impossible. Some services NACE rev 2 more

detailed – in a few cases data was never collected in the past. Begins 2005.

Eurostat web site entirely NACE rev 2 since April 2009 (monthly) or June 2009 (quarterly indicators)


Total industry – a comparison of old and newEU27 Index of Industrial Production(2005 = 100, seasonally adjusted)

75

80

85

90

95

100

105

110

115

Jan-

90

Jul-9

0

Jan-

91

Jul-9

1

Jan-

92

Jul-9

2

Jan-

93

Jul-9

3

Jan-

94

Jul-9

4

Jan-

95

Jul-9

5

Jan-

96

Jul-9

6

Jan-

97

Jul-9

7

Jan-

98

Jul-9

8

Jan-

99

Jul-9

9

Jan-

00

Jul-0

0

Jan-

01

Jul-0

1

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

new old


Next steps

Problems with seasonal adjustment– Caused by NACE rev 2, or abrupt change in

trend ? Currently collecting detailed information from EU

countries on how they did backcasting and the weights for 2005– Could be interesting for statisticians and a

summary for users.– Ready at end of 2009

introducing nace rev 2 in eu short-term business statistics

Documents