Introducing%20NACE%20rev%202%20in%20EU%20Short-term%20business%20Statistics

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Introducing NACE rev 2 in EU Short-term business
Statistics

• Brian Newson
• Head of STS unit Eurostat

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Coverage of Short-term business Statistics

• STS Regulation 4 annexes
• A. Industry
• B. Construction
• C. Retail trade
• D. Other services

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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.

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B. Construction

• Production (Building / civil engineering)
• Building permits
• Employment (number, hours worked, wages)
• Construction costs (materials, labour costs)
• Just NACE F Construction.

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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)

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D. Other services

• Other services defined by NACE list (covers
  most market services, except banking, insurance,
  RD)
• 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.

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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.

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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.

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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.

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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)

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Total industry a comparison of old and new
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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