1. Supply and Use Tables
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. Presentation
The SUTs are presented as 4 matrices:

3. Introduction
The supply and use tables (SUT) are a tabular presentation of the production and consumption of goods and services in the economy. In the rows, it presents the goods and services account at a detailed product level, maintaining the accounting balance between supply and demand for each product group.
Resources
Uses
Output
Net taxes on products
Imports
Intermediate consumption
Final consumption
Gross fixed capital formation
Changes in inventories
Acquisitions less disposals of valuables
Exports

4. Introduction
In the columns for the purchasing industries, we can see the entries of the production account. Total industry output less the intermediate consumption of goods and services from other industry products, gives Value added as a balancing entry at the foot of the columns for each industry.

5. The row balance
The supply of products through domestic output and imports is matched by the use of these products by business, final consumption of households and government, capital formation and exports
O + M + product taxes = IC + C + G +I + X

6. The column balance for business
The value added for each industry group is determined in each column by the difference between total output and the costs of production – intermediate consumption. Usually, expenditure on employment is entered for each industry and so instead of value added, operating surplus is shown as the balancing item.

7. Breakdown by products
In order to achieve a balance between supply and use across the rows, it is necessary to move the supply onto the same price basis as the use – ie to move to purchaser prices from basic prices.
This requires adjustments for product taxes, retail and wholesale margins, and transport margins.

8. Trade and transport margins
A trade margin is the difference between the sale price and purchase price.
Transport margins are transportation costs paid separately by the purchaser and are included in the use of products at purchasers’ price but not in the basic price of a manufacturer’s output or in the trade margins of wholesale or retail traders.
Transport of goods paid by a manufacturer and not invoiced separately are included in the basic price.

9. Resources and uses for a product
For a specific product we have a balance at purchasers’ prices:
Resources
Uses
Output
Taxes on products
- Subsidies on products
Imports
Trade margins
Transport margins
Intermediate consumption
Final consumption
Gross fixed capital formation
Changes in inventories
Acquisitions less disposals of valuables
Exports

10. The supply table
The supply table presents in columns the different resources for all the products:

11. Supply
Industries
Products
Agr
Man
Servs
Total output
6 000
100
6 100
1 100
24 200
300
25 600
10 000
10 200
Total
7 200
24 400
10 300
41 900

12. Total output
Imports
Margins
Taxes
Total supply
6 100
200
300
-100
6 500
25 600
2 000
1 500
500
29 600
10 200
1300
-1 800
1 000
10 700
41 900
3 500
1 400
46 800

13. The adjustment for margins and taxes
The Supply table rows for the products 'trade' and ‘transport' are special.
In order to adjust the output and imports of products from a basic price basis to a purchasers’ price, we must add taxes on products, and re-assign the retail, wholesale and transport margins from the producing industry product to the goods on which the margins are earned.
An example is given in the next slide

14. The adjustment for margins and taxes
Supply table example:
Products of agriculture
6100
200
300
-100
6500
Products of industry
25600
2000
1500
500
29600
Trade
1200
100
-1000
600
Transport
900
-800
Other services
8100
1000
9600
Total
41900
3500
1400
46800
Total supply
Output
Imports
Margins
Taxes - sub.

15. Use table – intermediate consumption
Industries
Products
Agriculture
Manufacturing
Services
Total intermediate demand
6 000
100
6 100
1 100
24 200
300
35 600
10 000
10 200
Total intermediate consumption
7 200
24 400
10 300
41 900

16. Use table – Final demand
Products
Final consumption Households
Final Consumption Government
Capital formation
Exports
Total Final demand
Agriculture
4 000
500
4 500
Manufacturing
5 000
8 100
18 100
Services
2 000
3 000
7 00
Total Final expenditure
11 000
10 600
29 600

17. Breakdown by industry
The aim here is to examine the production processes and to measure production costs of products .
For this we will group the companies producing the same products.
The problem is that the same company can produce different products. For example, a transport company may also have a repair activity.
The company is therefore not a good statistical unit to study the production process and it is necessary to break it down into more homogeneous units.
The local kind-of-activity (local KAU) is the statistical unit used for compiling SUT.

18. Local KAU
The local kind-of-activity unit (local KAU) is the part of a kind of activity unit (KAU) which corresponds to a local unit.
A KAU groups all the part of an institutional unit in its capacity as producer contributing to the performance of an activity at class level (four digits) of the NACE rev. 2 and corresponds to one or more operational subdivisions of the institutional unit.
The institutional unit’s information system must be capable of indicating or calculating for each local KAU at least the value of production, intermediate consumption, compensation of employees, the operating surplus and employment and gross fixed capital formation.

19. Industries
An industry consists of a group of local KAU engaged in the same, or similar, kind-of-activity. At the most detailed level of classification, an industry consists of all the local KAU falling within a single class (four digits) of NACE Rev. 2 and which are therefore engaged in the same activity as defined in the NACE Rev. 2.
All the local KAU of an industry have the same pricipal activity but may have different secondary activities.
In the SUT output and intermediate consumption are broken down by industry.

20. Production matrix
Production matrix shows a breakdown by product of the output of different industries:

21. Generation of income account
The generation of income account is also presented by industry:

22. Thank you for your attention
CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION