INDUSTRIAL
STATISTICS
GROUP A PRESENTATION
INTRODUCTION
PURPOSE OF INTERNATIONAL RECOMMMENDATIONS
NEED FOR REVISION OF INDUSTRIAL STATISTICS
WHAT IS INDUSTRIAL STATISTICS?
• Industrial statistics is a field of statistics that deals with maintaining
and improving the quality of goods and services in various sectors of
the economy including manufacturing and service industries.
• It involves collecting ,analyzing ,interpreting and presenting data
related to various aspects of industrial operations such as production,
quality control ,maintainance ,reliability and optimization
Introduction
Since the 1950s, the United Nations (UN) has published international
recommendations for industrial statistics of which the first was issued in 1953
(UN 1953) and subsequently revised in 1960 (UN 1960), 1968 (UN 1968a) and
1983 (UN 1983).
The UN Statistical Commission at its thirty-seventh session in 2006 reviewed the
industrial statistics programme and endorsed the proposal of the UN for the
revision of the international recommendations for industrial statistics as there
has been significant economic and statistical developments since these were
formulated last.
The purpose of developing these international recommendations was to
establish a coherent and uniform measurement of industrial activities for
national and international dissemination.
Purpose of the international recommendations
The international recommendation for industrial statistics is an agreed
intermediate output framework of a coherent set of internationally agreed
principles, concepts and definitions of data items to be collected and published
for the measurement of the industrial activity.
The National Statistical Offices (NSOs) need to assess applicability and
practicability of implementing the recommendations to their situation taking
into account their circumstances, for example, identified user needs, resources,
priorities and respondent burden.
IRIS 2008 provides guidelines for the collection, compilation, and analysis of
industrial statistics. Some of the key aspects include:
1. Definition of Industry: IRIS 2008 provides a framework for defining industry
sectors and subsectors. An example of ISIC Rev. 4, which categorizes
economic activities into sectors such as manufacturing, mining and
quarrying, construction, etc.
2. Data Collection and Compilation: The recommendations outline methods
for collecting and compiling industrial statistics, including surveys,
administrative data sources, and data from other relevant sources. For instance,
national statistical offices may conduct surveys to collect data on production,
employment, and value added by different industries.
3. Industrial Output and Production: IRIS 2008 provides guidance on
measuring industrial output and production, which may include indicators such
as the volume and value of goods produced. For example, a country's industrial
statistics may show the quantity of steel produced by its steel manufacturing
sector over a specific period.
4. Employment and Labor Productivity: The recommendations cover the
measurement of employment in the industrial sector, including indicators such
as the number of employees, hours worked, and labor productivity. For instance,
industrial statistics may track the number of workers employed in the
automobile manufacturing industry and their output per hour worked.
5. Value Added and Gross Domestic Product (GDP): IRIS 2008 includes
guidelines for estimating value added by industries, which is an important
component of GDP calculation. For example, industrial statistics may provide
data on the contribution of different sectors, such as manufacturing and
construction, to the overall GDP of a country.
6. International Trade in Goods: The recommendations address the
measurement of international trade in goods, including exports and imports by
industry. For example, industrial statistics may show the value and quantity of
exports of machinery and equipment produced by a country's manufacturing
sector.
Need for the Revision of Industrial Statistics
The present publication revises the 1983 recommendations (UN 1983) in respect
of developments in this area during the last 25 years.
This revision reflects a comprehensive measure both in the approach adopted
by the majority of countries to adapt the industrial statistics program to the
needs of national accounts and the measurement of the industrial sector for the
economy as a whole.
The more important factors that have guided the revision include:
• Revision of 1993 SNA that warranted changes relevant for the industrial
statistics include:
a) Treatment of goods sent abroad for processing.
b) Additional elements for the measure of compensation of employees like
‘employees stock options’
c) Recognition of units providing ancillary services as a separate establishment
in some specific circumstances
d) Classification and terminology of assets
e) Capitalization of database development and
f) Capitalization of research and development expenditures, etc.
• Consistency with changes in concepts, definitions and terminology in other
major statistical publications and regulations of other international
organizations.
• Revision of International Standard Industrial Classification of All Economic
Activities Revision 4 (ISIC Rev. 4) (UN 2006) and Central Product Classification
(CPC) Ver. 2 (UN 2007a);
• Inclusion of aspects of globalization of the industrial production process and
use of electronic commerce.
• Efforts of countries to minimize the differences between the concept of
“census value added” by approximating the measurement of national
accounts value added by including additional data items in their inquiries.
• Experience of countries in both developing an industrial statistics system and
conducting an integrated system of annual and infra annual industrial inquiries
adapted to the needs of national accounts and the measurement of the
industrial sector for the economy as a whole.
• Change in valuation of industrial output to basic prices in accordance with
valuation principle recommended by the 1993 SNA and applied in business
accounting.
• Expansion of the link between the economy and the environment by
extending the coverage of the data items to include the use of natural
resources like energy, water, mineral, generation of solid waste and waste
water and byproducts.
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