1. 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
WP June 2007

2. Milestones of the quality report
Year 2006
June 07
July 07
Sept 07
End 07
S1-08
1. STS sources X
X countries
eurostat
2. PEEI in focus
PPI
Template out
report
3. Quality report €indicator no
4. Burden & cost, benefits WG TF
Report to P&C
SPC
for info,
June WG
Information to users
PEEI in focus
STS sources update
WP June 2007

3. Information for report on cost & burden & benefits
26 countries, 4 annexes
hours worked per year for
Statistical cost
Statistical burden
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
WP June 2007

4. Benefits arising from the STS-R
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)
WP June 2007

5. 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)
WP June 2007

6. 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)
WP June 2007

7. 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)
WP June 2007

8. 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)
WP June 2007

9. Benefits arising from the STS-R
6. Punctuality in the dissemination
Punctual: yes (AT, FI, SI)
Modest improvement (ES)
WP June 2007

10. 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)
WP June 2007

11. 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
WP June 2007

12. Cost & burden ; benefits
text on benefits
answers on restricted STS Circa (if not send an )
Reminder: send your feedback ASAP (mid june)
Comments ?
WP June 2007

13. isabelle.remond-tiedrez@ec.europa.eu, WP June 2007
STS sources
Eurostat, march 07
Eurostat
2004 metadata
Mid July 2007
Countries, update 2007
WP June 2007

14. 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
WP June 2007

15. PEEI in focus, PPI in industry
thresholds
WP June 2007

16. PEEI in focus, PPI in industry
Share of MIGs in the total number of units in the national defined population
Selection of units: less exhaustive (2 countries, 8 for IPI), sampling techniques (purposive mainly), cut-off based on turnover
PPI
IPI
WP June 2007

17. PEEI in focus, PPI in industry
Sample size: units (half IPI)
Second step: selection of products (judicious sampling or cut-off) – products
Updating the sample
Every five years (12 countries) {14 countries update annually the sample for IPI}
Every year / 2 years / continuous update
WP June 2007

18. 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
WP June 2007

19. PEEI in focus, PPI in industry
Time period
14 specifically mention the 15th
Very good response rates: above 82%
Slightly lower response rate in July, August
WP June 2007

20. PEEI in focus, PPI in industry
Specific treatments
Treatment of quality change
Missing values
WP June 2007

21. 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)
WP June 2007

22. 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)
WP June 2007

23. 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
WP June 2007

24. Report to the Parliament and the Council
Based on different inputs discussed above
By August 11th , 2008 – proposal to the WG in December 2007
WP June 2007

25. 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 pages (half in annex)
WP June 2007

26. 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.
WP June 2007

27. isabelle.remond-tiedrez@ec.europa.eu, WP June 2007
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
WP June 2007

28. isabelle.remond-tiedrez@ec.europa.eu, WP June 2007
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
WP June 2007