State of the art on quality report

 Milestones: overview and focus on • Information for report concerning cost and burden and benefits • STS sources • PEEI in focus: output prices in industry and next subject • Output: report to Parliament and Council [email protected], WP June 2007 S T S

Milestones of the quality report

1. STS sources 2. PEEI in focus 3. Quality report €indicator 4. Burden & cost, benefits Report to P&C Information to users

Year 2006 June 07 July 07 Sept 07 End 07 X X no X PPI WG X countries TF X eurostat Template out S1-08 report X X PEEI in focus SPC for info, June WG STS sources update [email protected], WP June 2007 S T S

Information for report on cost & burden & benefits      26 countries, 4 annexes 4.000.000 hours worked per year for • Statistical cost • Statistical burden 930.000 respondent businesses => 4h20’ Main ideas in annex 1 Benefits arising from the STS-R • EU: Comments from ECB • 8 National institutes, mostly based on user surveys [email protected], WP June 2007 S T S

Benefits arising from the STS-R

1. Increasing amount of statistical information on the EU and € area aconomy    Satisfactory, sufficient, appropriate, inadequate, « not sufficient for comprehensive analysis » Entry of new countries Additional indicators: services sector mainly but construction (investment) [email protected], WP June 2007 S T S

Benefits arising from the STS-R

2. Timeliness     adequate (unanimous in AT), satisfied (unanimous in FI),very satisfied (54% in SI), current efforts timely, good enough Lag in US smaller, to reach US comparative standards – « flash estimates » (PL) Quarterly data less timely (LT) Specific PPI user: to reduce the press release time (EL) [email protected], WP June 2007 S T S

Benefits arising from the STS-R

3. Scope of STS     Sufficient to totally sufficient (AT), favor (LT), fairly satisfies (85% in SI), diverse (SK) Differs across countries, need of further homogeneity Other indicators: demand of investment (ES, FI), profitability, export, import, services (FI, PL, EL) Regional indicators (ES) [email protected], WP June 2007 S T S

Benefits arising from the STS-R

4. Quality of STS      Good or sufficient (AT), reliable statistics (LT), very satisfied (4/5 in FI), from very to not (38% in SI), mix sufficient and not relevant (SK) Improvements noticed (PL) More analysis for big countries (ES) Absence of full harmonisation (ES), more coherence (FI) Specifically construction data: low quality (ES) [email protected], WP June 2007 S T S

Benefits arising from the STS-R

5. Data revisions       Harmonise revision timetables, indication of uncertainty (ES) Mix sufficiently defined and not well explained Fairly satisfied (SI) Communication needs on revision (FI) Lower revisions - users confidence Improve procedures to eliminate revisions (PL) [email protected], WP June 2007 S T S

Benefits arising from the STS-R

6. Punctuality in the dissemination   Punctual: yes (AT, FI, SI) Modest improvement (ES) [email protected], WP June 2007 S T S

Benefits arising from the STS-R

7. Comparability of EU and euro area economy with US and Japan      Not explicit in the report (ES) Balanced views (AT), fairly satisfied (SI) Go for more homogeneity (EL), cyclic component filtering (PL) Add Russia, China and India in the comparison (AT, PL) National uses (SK: 2/3 not relevant) [email protected], WP June 2007 S T S

Benefits arising from the STS-R

General comments        Positive answers in general shorter deadlines and larger scope Flash estimates (PL) Not to focus only on PEEIs Details Current objectives not explicit Comparison between STS and other statistics [email protected], WP June 2007 S T S

Cost & burden ; benefits

 text on benefits • answers on restricted STS Circa (if not send an email) • Reminder: send your feedback ASAP (mid june)  Comments ?

[email protected], WP June 2007 S T S

STS sources Eurostat, march 07 2004 metadata Eurostat Mid July 2007 Countries, update 2007 [email protected], WP June 2007 S T S

PEEI in focus, domestic producer price index in industry • Focus on domestic PPI • Statistical surveys (marginally other sources, eg some price list in energy) • Coverage in terms of CPA and Nace • Thresholds: turnover more than employment [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry • thresholds Count of countries 9 6 2 3 8 3 All size classes Turnover threshold < EUR 200 thousand Turnover threshold betw een EUR 2 and 5 million Employment threshold = 3 or 5 Employment threshold = 10 Employment threshold = 20 [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry • Share of MIGs in the total number of units in the national defined population 2% PPI 2% IPI 31% 8% 38% Intermediate goods Capital goods Consumer durables Consumer non-durables Energy 33% 38% Intermediate goods Capital goods Consumer durables Consumer non-durables Energy 7% 20% 21% • Selection of units: less exhaustive (2 countries, 8 for IPI), sampling techniques (purposive mainly), cut-off based on turnover [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry  Sample size: 63.000 units (half IPI)  Second step: selection of products (judicious sampling or cut-off) – 120 000 products  Updating the sample • Every five years (12 countries) {14 countries update annually the sample for IPI} • Every year / 2 years / continuous update [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry  Definitions of prices • Frequently noted: excluding VAT and excise duties • Subsidies in or out STS-R “The appropriate price is the basic price that excludes VAT and similar deductible taxes directly linked to turnover as well as all duties and taxes on the goods and services invoiced by the unit, whereas subsidies on products received by the producer, if there are any, should be added.” • Agreement between business and NSI on specifications of the product [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry  Time period • 14 specifically mention the 15th 5 3 16 Particular day "Average" price for the month Any date during the month Other 8  Very good response rates: above 82%  Slightly lower response rate in July, August [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry Specific treatments  Treatment of quality change  Missing values Overlapping Judgmental approach Automatic linking Unadjusted price comparison Matched models only Hedonic adjustment Production costs Other Option prices 0 5 10 15 20 25 30 24 14 13 12 12 2 3 4 5 25 20 15 10 5 0 22 15 3 3 4 [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry Specific treatments  Index compilation • 2 to 4 steps    One product of the business = one price = one elementary index 4-digit, cpa (6,9), prodcom (10 digit), commodity group, market (rare) - weights (except DE, IT, HU, AT, RO) 2 last steps for higher level of aggregation (CPA 6-digit & Nace 4 digit for example) – weighted average based on turnover/sales data (mainly) [email protected], WP June 2007 S T S

PEEI in focus, PPI in industry • Revisions  16/30 countries do not revise • Editing at micro and macro level - errors  Consistency checks to avoid processing errors  Measurement errors sometimes from the quality adjustment procedures / representativeness of products closely followed • No measurement of non-response bias • No calculation of sample errors except UK • PPI=F(monthly growth rates) • correlations between growth rates are modelled • CV ~0.7 for total industry • Comparison with other data: prodcom, prices indices (CPI, XMPI, UVI) [email protected], WP June 2007 S T S

PEEI in focus, next subject  Eurostat’s proposal to cover • Production in construction index  Template prepared based on 2007 STS sources during the fall 2007  Send out to countries early December 2007  Replies by mid-April 2008 [email protected], WP June 2007 S T S

Report to the Parliament and the Council

 Based on different inputs discussed above  By August 11th , 2008 – proposal to the WG in December 2007 [email protected], WP June 2007 S T S

Report to the Parliament and the Council

Structure of the report

    Relevance (outcome of the benefits discussion -5 pages) Quality of the data (availability & coverage, timeliness, comparability, coherence, accuracy), described by annex (15-20 pages) Revisions of the main indicators (in relation to the statistical methods, the NSI dissemination policy and their impact on the index levels (5-8 pages)) Cost and burden arising from the STS-Regulation, reporting on best practices to lessen the burden on business (around 10 pages) So in total some 35-40 pages (half in annex) [email protected], WP June 2007 S T S

Report to the Parliament and the Council

The provisional time schedule:  After the summer 2007, Task Force on Cost and Burden • to finalise the text on the relevance and benefits • Need feedback from countries related to the text on benefits  October-November • draft report prepared by Eurostat; comments from the Task Force members would be welcome   December 2007 • draft report submitted to the STS Working Group Proposal to the Statistical Programme Committee first half 2008.

[email protected], WP June 2007 S T S

Information to users

 

Metadata

updated in March 2007 with new definitions regulations, new indicators Dedicated section on Eurostat website 

PEEI in focus summary report

= to make them available to public  ask countries before the end of 2007 to give their agreement by e-mail [email protected], WP June 2007 S T S

Conclusions



Comments are welcome

 give their agreement for the Production Index in Construction to be the next PEEI in focus  comments on the structure proposed and time schedule for the report to Parliament and

Council

[email protected], WP June 2007 S T S