Services Production index base 2010

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Documentation on methodology

The production of services of a company can be approached by the turnover it generates. It is necessary to deflate (divide) the index of turnover in value by a price index of production reflecting the evolution of prices of the sector in question in order to monitor the turnover of the sector at constant prices.

Turover  indices in value are produced monthly (available at M + 60 days), whereas production price indices in services (IPSE) are produced only quarterly (available at T + 60 days). Quarterly construction  of production prices requires a double statistical treatment for the calculation of a monthly production price index:
• Quarterly price indices should be monthly.
• The date of availability of these indices is 60 days after the end of the quarter when the index of production is to be published 60 days after the end of the month. At this date, for some months, the quarterly price indices are not yet available. Prices must therefore be predicted.

Some sectors do not have a production price index for  services. An imputation must then be used. Other sectors have been covered more recently, so a retropolation is necessary. The production prices of certain sectors are not collected; In these cases, a very close price index, the consumer price index (CPI), or a price index of production in another service appearing as a good proxy, are used.

In particular, for the R and S sectors, which are mainly services sectors for households, there is none production price index for services. The Consumer Price Index (CPI), which measures changes in the prices of goods and services consumed by households, is then used as a deflator. It is measured all taxes included, so it is necessary to correct the VAT rates to make it duty-free. Indeed, the measurement of a price index for the production of services sold to households in France, according to the conventions of the national accounts, must be established at basic prices (unlike consumer price indices which are priced at market). The base price is the amount the producer receives from the purchaser per unit of good or service produced, less taxes on products and increased subsidies on products.
The CPI is used for lack of Production price index for  services (IPSE)for the R and S sectors, but also for accommodation and restaurants and some sub-sectors such as cinema, theater etc ...

Once the price indexes have been processed via the various statistical methods, a service sector turnover index and a raw price deflator have been available for each service sector category since 2005.

The production indices at a fine level are defined as the ratio of the turnover index in value to the associated price deflator. This is done for the 141 classes in the service sector.

Once the indices at the finest level of nomenclature are calculated, the indices for higher levels are obtained by aggregating .

Indices for the broader sectors are calculated as Laspeyres indices (with constant weightings over time) from the most detailed indices. They are rebased every 5 years; indices currently published use base 2010, i.e. the weightings of the different levels correspond to values calculated for the year 2010. They are also published with a reference of 100 in 2010, i.e. the indices have a mean of 100 in 2010.

The constant weightings of the basic indices are the values ??added per branch at basic prices. The basic price is the amount the producer receives from the purchaser per unit of good or service produced, less taxes on products and increased subsidies on products. The base price excludes freight charges invoiced separately. The weights were calculated from national accounts data.

The series are corrected for seasonal adjustments (SA) and calendar effects (working day adjustments WDA). An estimate of these effects is produced with the X12-Arima software in JDemetra+ (supplied by Eurostat) at the classes level of NAF rev. 2. This correction is made at the level of the "volume" ratio, ie raw turnover index in value / raw price index. SA-WDA indices for higher levels are obtained by aggregating the SA-WDA indices of the classes that make up the level.
The annual mean of the SA-WDA indices can slightly differ from that of the raw indices because it takes into account variations from one year to the next in the annual composition in working days: presence of leap years, position in the week of various public holidays, and so on.