1. SUTs – data sources and bridge tables
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. Compiling the supply tables
The Make matrix (M)
Shows the production of products by industry
Products – CPA
Industries – NACE Rev 2
Output at basic prices

3. Compiling the supply tables
How many industries?
How many products?
What factors affect the choice?

4. Make matrix (production table)
Make matrix shows the production of products (rows) by industries (columns)
It shows main products by industry in diagonal
It shows secondary production in off-diagonal cells

5. Make matrix – secondary production
Large secondary production entries are
Manufacturing producing construction, and wholesaling, retailing and business services
Construction produces manufacturing
Wholesaling and retailing produce each other
Business services do some retailing

6. Make matrix
If detailed product information is available for international trade, industrial output and purchases, then the supply system should make use of this information through showing more products than industries
This will enable more secure allocation of supply to intermediate and final demand categories when reconciling production and expenditure

7. Make matrix
In Europe, there is annual survey (PRODCOM) of industry producing goods to show production of product headings according to CPA
This survey allows a rectangular table of production by industry (NACE Rev 2) and products (CPA 2008).
Total production is extended and grossed up to be consistent with annual business inquiry

8. Supply table data sources
Each step in moving from basic prices to purchasers’ prices is set out in Table 4.13 of the Eurostat manual on supply, use and I-O framework
For output,
Output at basic prices + taxes on products + non-deductable VAT, gives producers prices (net of deductable VAT) and then +non-deductable VAT + trade margins + separately invoiced transport charges gives output at purchasers price

9. The tax nomenclature for the EU D. 2 Taxes on production and imports D
The tax nomenclature for the EU D.2 Taxes on production and imports D.21 Taxes on products D.211 VAT D.212 Taxes on imports D.214 Taxes on products (not VAT or tax on imports) D.29 Other taxes on production

10. Imports
Imports of goods are valued at cif in the international trade figures
Adjustments are needed to ensure that domestic insurance and freight services supplied outside the border of the exporting country, are excluded from the import values to prevent double counting of supply

11. Distribution margins These margins apply to
wholesaling – transactions between intermediate producers
Retailing – transactions between producers and final expenditure

12. Margins
Data source – Surveys into the wholesaling and retailing industries, identifying goods for resale and goods sold separately from other purchases
These surveys should give detail on products handled so that margins (value of goods for sold less value of goods for resale) can be established by product

13. Margins
More information on retailing margin by type of outlet can be obtained from non-government sources – analysis companies, large business reports, etc.
Where no new information is available, use historic estimate sof margins and chek sum with output of retailing industry

14. Taxes
A comprehensive account of taxes raised by government from business production is usually available from business surveys, as a publication, or detail direct from the government tax office
The information should allow an allocation of production taxes and product taxes by kind of business, and VAT by products if the records include detailed business type

15. The use table – industry purchases
The information on business purchases for a year will come from an annual business survey, extended by more detail on the product composition of inputs.
This extended survey may only occur at 5 or 10 year intervals, given the extra resource demands on both NSOs and business
Output and value added measures and some key inputs are collected annually.

16. Purchases by Households
Data on household spending can come from
Household Budget Surveys
Detailed Retailing Surveys
The classification for household spending is “Classification of Individual Consumption by Purpose” (COICOP)

17. Bridge table
For a year when most information is available on household spending by purpose though an HBS or extended retail sales inquiry
A bridge table can be constructed
This table will allow product input structures to be estimated for non benchmark years, using the structure of teh benchmark year spending

18. Purchases by government
Data on government spending comes from government departments
The classification is “Classification of the Functions of Government” (COFOG)
In benchmark years, special exercises on the product make-up of department purpose spending can be carried out, to create bridge tables which will allow non-benchmark year estimates to be derived.
Household Budget Surveys
Detailed Retailing Surveys
The classification for household spending is “Classification of Individual Consumption by Purpose” (COICOP)

19. Purchases of assets
Data on gross fixed capital formation by NACE industry groups will come from
Annual Business Surveys, ideally with extended forms to capture product detail of assets acquired.
It is also possible to allocated products to capital formation from international trade and domestic production (PRODCOM) through a description of the nature of the products e. brewing tank
The classification for household spending is “Classification of Individual Consumption by Purpose” (COICOP)

20. Exports
These are available through Customs measures of international trade (in Europe collected through an extension of the VAT data collection system)
A bridge table can be constructed as with imports, to move from a CN basis to a CPA basis
Services are available trough the Balance of Payment Services inquiries

21. Commodity flow estimates
Where input structure information is missing, fragmentary or of uncertain quality, allocating products through detailed description to its “likely” user is a good second best
E.g. brewing tank – probably capital formation in the beer production business
For retailed goods, distribution margins and product taxes must be allowed for if the use is at purchaser prices

22. Value added
There is a confrontation between value added as the difference between output and input (the production approach) and the income estimate from other sources such as tax records
There is usually a good correlation between compensation of employees if this is measured through the business survey
But operating surplus can be different by large amounts, and reconciliation is case by case

23. Other data sources Agriculture – Ministry of agriculture
Transport data from Department of Transport
Other business surveys e.g. New earnings survey
Company accounts
Business associations