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Comparability

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Short-Term Statistics, Business Statistics
Morten Skovrider Kollerup
+45 39 17 32 49

msl@dst.dk

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Manufacturers’ Sales of Goods (quarterly)

In its present form and as available in StatBank Denmark, the statistics are comparable since 1995, but the statistics have been produced in some form since 1905. The Prodcom-version of the statistics can be compared to Prodcom statistics of other EU countries. The statistics can be compared to Foreign Trade in Goods to create statistics on apparent consumption - for this, it is important to note the difference in coverage and the potential quality issues at the most detailed CN code level. The tables with sales by industry are consistent from 2000 following the DB07 classification.

Comparability - geographical

All EU member states produce Prodcom statistics. Manufacturers' sales of goods is the Danish Prodcom statistics and can be compared to those of other EU member states. Manufacturers' sales of goods differ in a few aspects from the Prodcom statistics as described in the regulation and commonly implemented. Firstly, industrial services are not covered in the detail prescribed by the Prodcom list. Secondly, coverage is not defined as production on the physical territory of Denmark, but by the economic ownership of goods sold and produced by Danish enterprises (cf. Geographical coverage).

Comparability over time

Historically, the statistics date back to 1905 as a survey measuring the industrial production. In 1944, the name was changed to Industrial Production Statistics. In 1967, the name became 'Product statistics for industry', and the statistics no longer measured production, but sales instead. From 1968, the survey has been conducted quarterly, before it became an annual survey. The present name, 'Manufacturers' sales of goods' was introduced in 2007.

The statistics use two sets of classifications: one for products and one for economic activities. Changes in the classifications affect comparability over time.

The classification of products is the 8-digit Combined Nomenclature (CN). The CN is changed every year, which normally only affects 100-600 of the groups. Years with major CN revision typically affect up to 2,000 groups. The latest major revision was in 2012.

CN codes have 8 digits and are regulated by the EU. Prior to 2008, the CN codes were, for selected product categories (e.g. wind mills), further divided as Danish national codes using a 9th and 10th digit. This was discontinued to reduce response burden.

The codes for classification of economic activities are not changed each year, but only with long intervals. The present classification, Dansk Branchekode 2007, was introduced in the statistics in 1st quarter 2009. For the period 2000-2008, the statistics were converted to Dansk Branchekode 2007 to create a consistent time series. Prior to 2000, data are available according to Dansk Branchekode 2003, and older classifications.

Coherence - cross domain

The statistics may be compared to a number of other statistics that describe the manufacturing industry. In all cases there are however differences in units, definitions and/or coverage, which need to be considered when comparing. The main related statistics are:

  • Industrial production and turnover: The statistics is a monthly index based on a sample. The statistical unit used is the Kind of Activity unit, which is also used in the manufacturer's sales statistics. The industrial production and turnover statistics does however not include commercial resale turnover.

  • External trades in goods: Exports and imports data are available according to the same commodity codes as manufacturer’s sales, so data can be combined. One should be aware that the enterprise is used as the statistical unit in the external trade statistics. Another difference between the two statistics is that the manufacturers sales of goods includes goods produced abroad under subcontracting for Danish enterprises, while the external trade statistics only includes goods that cross the Danish border. On the other hand, commercial resale turnover is divided on commodity codes in the external trade statistics, which is not the case in the manufacturer's sales statistics.

  • Purchases and sales by firms: The statistics are based on the enterprises’ VAT reporting to the Danish tax authorities. The variable Total sales consists of domestic sales added export sales, and is comparable with the total turnover in the manufacturer’s sales. Inconsistencies between the two statistics is typically due to the fact that the Purchases and sales statistics has the enterprise as the statistical unit and that the two statistics have different definitions on turnover. Another reasons for inconsistencies is that the main purpose of the purchases and sales statistics is to collect information on VAT payments, while the statistical use of the data is secondary. Furthermore, sales that are subject to VAT in another EU country, is exempt from VAT in Denmark and will not be included in Purchases and sales by firms.

-Accounts statistics: The statistics provides key economic figures, also for manufacturing industries. The accounts statistics is based on the enterprise as the statistical unit.

In addition, for mining and quarrying, it is possible to compare to the annual statistics on mining and quarrying (volumes, not values)

The difference between manufacturers' sales and production as measured in the National Accounts is mainly different definitions and calculations in the National Accounts to ensure full coverage (for units with less than 10 employees) and consistency.

Coherence - internal

Seasonal adjustment of aggregate series is carried out indirectly, so there is full consistency. Annual versions of the statistics are always equal to the sum of the statistics for the 4 quarters of the same year.