CHAPTER 2 – Session 8 United Nations Statistics Division/DESA Revision of the Index of Industrial Production (IIP) publication by the UNSD

2 Chapter 2 Summary of chapter:Summary of chapter: This chapter presents the fundamental concepts underlying the compilation of an IIP. This chapter:This chapter presents the fundamental concepts underlying the compilation of an IIP. This chapter: Defines industrial production and discusses how industrial production is measured,Defines industrial production and discusses how industrial production is measured, Discusses the presentation of IP measures as index numbers as well as the frequency (i.e. monthly) at which the IIP should be compiled;Discusses the presentation of IP measures as index numbers as well as the frequency (i.e. monthly) at which the IIP should be compiled; The chapter concludes by discussing the IIP in the context of the Quarterly National Accounts.The chapter concludes by discussing the IIP in the context of the Quarterly National Accounts.

3 Chapter 2 – Recommendations & Feedback General support for the structure and content of chapter 2.General support for the structure and content of chapter 2. Recommendation: The Index of Industrial Production should be compiled for activities in ISIC Rev. 4 Sections B, C, D and E, i.e. Mining, Manufacturing, Electricity, gas steam and air- conditioning supply, as well as water supply, sewerage, waste management and remediation activities. This scope coincides with the scope of the International Recommendations for Industrial Statistics 2008.Recommendation: The Index of Industrial Production should be compiled for activities in ISIC Rev. 4 Sections B, C, D and E, i.e. Mining, Manufacturing, Electricity, gas steam and air- conditioning supply, as well as water supply, sewerage, waste management and remediation activities. This scope coincides with the scope of the International Recommendations for Industrial Statistics FEEDBACK - It would be helpful to provide a broader discussion of the rationale for the scope of industrial production.FEEDBACK - It would be helpful to provide a broader discussion of the rationale for the scope of industrial production.

4 Chapter 2 – Recommendations & Feedback Recommendation: It is recommended that the IIP be compiled monthly so turning points in economic development can be identified at the earliest possible point in time.Recommendation: It is recommended that the IIP be compiled monthly so turning points in economic development can be identified at the earliest possible point in time. FEEDBACK suggests this recommendation is supported.FEEDBACK suggests this recommendation is supported.

5 Chapter 2 – Recommendations & Feedback IIP & link to the QNA: (section 2.5) There is no recommendation relating to this topic however the UNSD received the following comments: [Should this be discussed with benchmarking?]IIP & link to the QNA: (section 2.5) There is no recommendation relating to this topic however the UNSD received the following comments: [Should this be discussed with benchmarking?] FEEDBACKFEEDBACK We agree with the emphasis placed on the conceptual links between the IIP and the compilation of the Quarterly National Accounts, but we also think the alternative Census value added concept has merit.We agree with the emphasis placed on the conceptual links between the IIP and the compilation of the Quarterly National Accounts, but we also think the alternative Census value added concept has merit. Recommendations should place more emphasis on the importance of attempting to measure value added on a quarterly or monthly basis when it is feasible.Recommendations should place more emphasis on the importance of attempting to measure value added on a quarterly or monthly basis when it is feasible. Is a recommendation required for this topic?Is a recommendation required for this topic?

6 Chapter 2 - Discussion Are there any comments on the following chapter 2 topics?Are there any comments on the following chapter 2 topics? It would be helpful to provide a broader discussion of the rationale for the scope of industrial production.It would be helpful to provide a broader discussion of the rationale for the scope of industrial production. the concept of census value addedthe concept of census value added more emphasis on the importance of attempting to measure value added on a quarterly or monthly basis when it is feasible.more emphasis on the importance of attempting to measure value added on a quarterly or monthly basis when it is feasible. Add a recommendation for link between IIP and QNAAdd a recommendation for link between IIP and QNA