Revisions to data of the volume index of industrial output for January-February 2010

Reasons for revisions of original data:

Estimation

Estimation is used in the industry of manufacture of electrical and electronic products, because data on some listed companies are not at Statistics Finland's disposal within the production timetable of the statistics. The data on the industry have to be estimated eight times per year, which means that the first two months of each quarter are estimated. For example, the data for January and February were estimated in the previous releases and now the data for these months become revised in connection with the release for March because the data are now at Statistics Finland's disposal.

The Tax Administration's payment control data are used to describe the development of output in enterprises with fewer than 50 employees in certain industries. The data are not available within the production timetable of the statistics and therefore for the newest month the development of enterprises with fewer than 50 employees is estimated. Normally the payment control data are available to Statistics Finland for the second release on the month concerned.

The share of estimation is at its highest in the data for the first two months of each quarter, when as much as 24 per cent of the index data are based on estimation. At turning points of economic trends and during structural changes, the estimation models react slowly to changes.

Missing data

The volume index of industrial output is based on a sample. The sample comprises some 1,000 establishments or enterprises. Every month, data are missing for an average of just under 20 establishments. This may cause revisions to the data but its impact has been quite minor.

The payment control data collected by the Tax Administration are used to describe the development of output in enterprises with fewer than 50 employees. In principle, these data will be complemented over a period of six months. The most significant complementation occurs between the second and third releases. Then the revisions are estimated to be minor on the level of total industries, however. Nearly 70 per cent of the enterprises with fewer than 50 employees are covered by payment control data.

Changing of seasonally adjusted figures

Seasonally adjusted index point figures may change even if original index point figures do not. The changes in the seasonally adjusted and trend point figures may also stretch several years back. Especially at turning points of economic trends seasonally adjusted series fail to react sufficiently quickly to sharp changes.

Figures become revised faster than before

Below is an example of how the original annual change percentages for January and February 2010 became revised in a few main activities. The revisions in the second release for January are mainly based on the renewals introduced. In the following the revisions between the first and second releases are significantly smaller and are mainly due to the payment data becoming available to statistics compilation.

Previously revisions have occurred in the annual volume index in connection with the benchmarking once a year with a delay of around one to two years. The main object of the renewals has been to accelerate revisions to one to two months. Estimation helps to diminish revisions.

The table shows that no appreciable revision took place in manufacturing exclusive of the electrical and electronics industry. Almost all of the revision comes from the electrical and electronics industry. The weight of this industry (26-27) in total industries is 19.2 per cent.

Revisions to data

Revisions to data for January
Industry 1st release 2nd release 3rd release
Total industries BCDE -1.8 0.0 7.2
C Manufacturing -4.1 -3.7 6.7
Manufacturing, excl. electrical and electronics industry (C excl. 26-27) -5.4 -3.2 -3.1
Electrical and electronics industry 26-27 2.2 3.8 50.7
Revisions to data for February
Industry class 1st release 2nd release
Total industries BCDE -1.9 0.9
Manufacturing C -3.7 -0.4
Manufacturing, excl. electrical and electronics industry (C excl. 26-27) 0.6 1.7
Electrical and electronics industry 26-27 -18.1 -7.1

Last updated 10.5.2010

Referencing instructions:

Official Statistics of Finland (OSF): Volume index of industrial output [e-publication].
ISSN=1798-9272. Helsinki: Statistics Finland [referred: 19.8.2019].
Access method: http://www.stat.fi/til/ttvi/ttvi_2010-05-10_uut_001_en.html