Volume index of industrial output

Producer: Statistics Finland
Homepage: http://www.tilastokeskus.fi/til/ttvi/index_en.html
Main topic: Manufacturing
Related topics:
Official Statistics of Finland (OSF): Yes
European Statistical System (ESS): Yes

Description

The volume index of industrial output describes the relative change in the volume of industrial output at fixed prices when compared with a specific base period. The volume index of industrial output is based on an inquiry sent to enterprises or establishments. Enterprises and establishments are asked about volume or value data every month.

Data content

The volume index of industrial output is a monthly set of statistics based on a judicious sample. In accordance with international recommendations, the base year of the volume index of industrial output is revised at five-year intervals. Years ending with 0 or 5 have been selected as base years.

The index is calculated from data obtained from individual establishments or enterprises. Each month data supplier establishments or enterprises are sent an inquiry which asks about the output volumes or total output values of the commodities they produce. The value data are deflated with the producer price index of the respective commodity or industry. The monthly volume index is calculated as a weighted arithmetic average of output. The weights used for individual establishments are either the latest available annual values by commodity obtained with the direct inquiry or the values of the annual output of the respective establishment obtained from structural business statistics. The volume index of industrial output is calculated with so-called moving weights, i.e. the establishment and industry-specific weights are reviewed annually.

A volume index is calculated for each establishment. The monthly volume or other similar data of an establishment are divided by the annual average volume of the comparison year and multiplied with the value of the annual output of the respective commodity. An index at the most detailed level of the industrial classification is obtained by weighting together the indices of all establishments within one industry. The indices for the most detailed levels of the industrial classification are then weighted by value added data to apply them to higher classification levels. An original series by industry is calculated from the volume index. The volume index is adjusted for working days and seasonal variation with a model-based method. Seasonal adjustment is a computational method which aims to eliminate the effects of regular seasonal variation from series adjusted for working days.

The monthly sample-based index is benchmarked against an annual census-based volume index. The calculation of the annual volume index is based on data on establishments and commodities derived from Statistics Finland’s business structures statistics.

The statistics and indices compiled from the data are public under the condition that the data of an individual enterprise or establishment cannot be identified from them.

The volume index of industrial output is published according to the following industrial classification:

Industry TOL 2008

2005=100

BCDE Total industry

B Mining and quarrying

C Manufacturing

Manufacture of food products
Manufacture of beverages
Manufacture of textiles
Manufacture of wearing apparel
Manufacture of leather and related products
Manufacture of wood and products of wood and cork
Manufacture of paper and paper products
Printing and reproduction of recorded media
Manufacture of other non-metallic mineral products
Manufacture of basic metals
Manufacture of fabricated metal products, except machinery and equipment
Manufacture of machinery and equipment n.e.c.
Manufacture of motor vehicles, trailers and semi-trailers
Manufacture of other transport equipment
Manufacture of furniture
Other manufacturing
Repair and installation of machinery and equipment

D Electricity, gas, steam and air conditioning supply

E Water supply; sewerage, waste management and remediation

Water collection, treatment and supply

Special indices

10-11 Food industry

13-15 Manufacture of textiles, wearing apparel and leather

16-17 Forest industry

19-22 Chemical industry

24-30 Metal industry

met. excl.(26-27) Other metal industry*

26-27 Manufacture of electronic and electrical goods

25,28,29,30,33 Machinery and metal manufacturing

29-30 Manufacture of transport equipment

Classification by purpose

Raw materials and output commodities

Investment goods

Durable goods

Other consumption goods

*metal industry excl. manufacture of electronic and electrical goods

Classifications used

Three classifications are used in the volume index of industrial output: an application based on the harmonised PRODCOM nomenclature of the European Community and made for the needs of statistics on manufacturing trends, the Standard Industrial Classification (TOL 2008) and the classification by purpose of use (MIG). The classification by purpose of use groups the most detailed industry levels by the purpose for which the products typical for them are used. The classification has five groups: Energy products, Intermediate products, Investment products, Durable consumer products and Non-durable consumer products. In addition, a few summary levels viewed as important are formed from the categories of the Standard Industrial Classification Examples of these are forest industry, chemical industry, metal industry and other metal industry.

Standard Industrial Classification 2008: Handbooks 4, Statistics Finland 2008.

Data collection methods and data sources

The volume index of industrial output is based on an inquiry sent to enterprises or establishments. The data of the volume index of industrial output derive from the Register of Enterprises and Establishments of Statistics Finland’s business structures statistics. The largest establishments in each industry at the most detailed level, totalling approximately 1,000, are selected from the Register for the index In addition, value added shares by industry calculated by the business structures statistics, and the producer price index for manufactured products compiled by the Prices and Wages department are used in calculating the index.