1. ECONOMIC AND ACTIVITY CLASSIFICATIONS
Title of course
NACE Rev. 2
Marie-Madeleine Fuger (INSEE -France-)
Gheorghe Constantinescu (INSSE -Romania-)

2. NACE Rev. 2 Development of NACE Rev. 2
NACE Rev. 2 is a result of the “Operation 2007 “
Operation the revision process of the reference/central
classifications, which, effectively, began in 2002.
Why a revision?
A classification:
► a representation of the world
► a common language
► a tool used in data production, which allows comparisons
Since 1989, ISIC rev. 3 almost unchanged (slightly updated in 2002);
Between 1989 – 2007, the world changed;
e.g.: – “explosive” development of IT industry
The next update of HS (the “building blocks” provider for ISIC), in 2007

3. NACE Rev. 2 Development of NACE Rev. 2 ISIC revised NACE revised
Operation a complex process which impose a strong coordination.
The actors
UN:
• Statistical Commission (40 countries);
• Technical sub-group of the Expert Group on International Economic and
Social Classifications.
EU:
• EUROSTAT – The NACE/CPA Committee, eurostat units (statisticians);
• European Central Bank – ECB;
• FEBIs and FEBSs (professionals);
• Associated and candidate countries (NSIs, Ministries)

4. NACE Rev. 2 Development of NACE Rev. 2 Operation 2007 - achievements
Activities classifications:
• ISIC Rev. 4 - International Standard Industrial Classification – revision 4;
• NACE Rev. 2 - Statistical Classification of Economic Activities in the
European Community – revision 2.
Product classifications:
• CPC Vers.2 - Central Product Classification – version 2;
• CPA Classification of Products by Activities – 2008.
National versions of NACE Rev.2/CPA 2008

5. NACE Rev. 2 NACE Rev.2 Structure and coding of NACE Rev. 2
▪ NACE Rev. 2 structure - four levels
▪ Coding system of NACE Rev.2 – alphanumerical
 STRUCTURE
CODE
ISIC Rev. 4
NACE Rev. 2
Difference
Sections
One letter 21 =
Divisions
Two digits 88
Groups
Three digits
238
272
+34
Classes
Four digits
419
615
+196
NOTE: the subsection level from NACE rev. 1.1
was erased from NACE Rev. 2 structure

6. NACE Rev. 2 Changes in NACE Rev. 2
Structural changes between NACE Rev. 1.1 and NACE Rev. 2 - Quantitative
NACE Rev. 1.1
NACE Rev. 2
Difference
Sections 17 21
+ 4
Subsections 15
-15
Divisions 62 88
+26
Groups
224
272
+48
Classes
514
615
+101
Aggregated structures for national accounts
► High-level aggregation (A10/11): 10 or 11 categories - based on NACE sections
► Intermediate aggregation (A38): 38 categories – based on NACE divisions

7. NACE Rev. 2 Changes in NACE Rev. 2
► More details
615 classes in NACE Rev. 2 instead of 514 in NACE Rev. 1.1
More details in primary sector and in services.
► Changes in the hierarchy (higher or lower)
A division for ICT goods (according to the OECD definition of ICT sector);
Some activities from group level to division level:
Beverages, Printing and reproduction, Furniture, Pharmaceutical products;
or from division level to group level
Recovery / recycling.
► Changes of location (mainly out of manufacturing)
Publishing, Recovery/recycling

8. NACE Rev. 2 Changes in NACE Rev. 2
Major changes in NACE Rev. 2 structure – section level
► « Water, sewerage, waste management, recycling and remediation activities »
A grouping linked to « environment »
► « Information and communication »
A grouping of all activities linked to « information » generally disseminated
(Production, publishing, movies, sound, radio, television, telecommunications, Internet, IT services)
► « Real estate services, rentals and business services » split in three sections
Real estate, renting and leasing
Scientific, professional and technical services
Support services

9. AGRICULTURE, FORESTRY AND FISHING
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section A
AGRICULTURE, FORESTRY AND FISHING
Agriculture
▪ Many details
▪ A split perennial – non perennial crops
▪ Mixed farming unchanged, same rule
- mixed activities of growing and farming, each less than 66%
▪ Support activities and post harvest crop activities
- just for primary markets
- a mixture of production for own account and services
- seed processing for propagation
▪ Hunting and trapping
- “for commercial purposes”

10. NACE Rev. 2 Forestry Fishing
Detailed changes in NACE Rev. 2 – Section A
Forestry
▪ Distinction Sylviculture vs. Logging
▪ Gathering of wild non-wood products (mushrooms, berries, cork, resin, etc.)
Fishing
▪ Distinction fishing vs. aquaculture (aquafarming)
▪ Distinction marine vs. freshwaters

11. NACE Rev. 2 MINING AND QUARRING
Detailed changes in NACE Rev. 2 – Section B
MINING AND QUARRING
▪ Peat removed, considered as a non-energetic product
- with other quarrying
▪ Distinction crude petroleum vs. natural gas
- probably not always easy to distinguish
▪ Salt production
- processing of salt in table salt (iodised salt) considered as manufacturing
▪ Support activities separated from the corresponding extraction

12. NACE Rev. 2 Detailed changes in NACE Rev. 2 – Section C
New divisions in section C - MANUFACTURING
► Manufacture of beverages – from group level
► Manufacture of basic pharmaceutical products and pharmaceutical
preparations – from group level
► Manufacture of computer, electronic and optical products – according to
OECD definition for ICT sector
► Manufacture of furniture – from group level
► Repair and installation of machinery and equipment – 100% new

13. NACE Rev. 2 MANUFACTURING Detailed changes in NACE Rev. 2 – Section C
Manufacture of food products
▪ New class for prepared meals and dishes
- boundaries problems: Meat, fish, vegetables vs. Meals and dishes
▪ Edible ice moved with the air-conditioning supply
Manufacture of wearing apparel
▪ Imitation and artificial furs were removed
- into the classes where are obtained, by weaving or knitting
Manufacture of leather and related products
▪ Shoe parts made from other materials were removed
- into the classes where are produced (e.g. wood parts in manufacture of
products of wood)

14. NACE Rev. 2 MANUFACTURING Detailed changes in NACE Rev. 2 – Section C
Publishing removed in the section J “Information and Communication”
- not a manufacturing process
Printing and reproduction of recorded media
▪ Now includes the printing “on fabrics and wearing apparel”
- with one technical exception (silk printing technique)
▪ Reproduction of recorded media grouped in one class, instead of three
- same process  digital
Manufacture of chemicals and chemical products
▪ Enlarged with: - enrichment of uranium;
- ink cartridge for ball points.

15. NACE Rev. 2 MANUFACTURING Detailed changes in NACE Rev. 2 – Section C
Manufacture of rubber and plastic products
▪ Enlarged with:- parts of boots and shoes;
- articles from the NECE Rev. 1.1 division “Other manufacturing”
(e.g. rubber stamps, rubber brushes, linoleum etc) .
Manufacture of basic metals
▪ Includes processing of nuclear fuel
- smelting and refining of uranium
Manufacture of fabricated metal products, except machinery and equipment
▪ Includes production of weapons and ammunition
- without military vehicles (tanks, fighting vehicles)

16. NACE Rev. 2 MANUFACTURING Detailed changes in NACE Rev. 2 – Section C
Manufacture of computer, electronic and optical products
▪ Structured according to OECD definition for ICT goods;
▪ A large division covering:
▫ electronic components;
▫ consumer electronics (audio and video equipment);
▫ computers and peripheral equipment;
▫ instruments for measuring, testing and navigation;
▫ electromedical and electrotherapeutic equipment;
▫ communication equipment (telephone equipment, broadcasting,
transmitting and GPS equipment, etc.);
▫ optical instruments and equipment;
▫ magnetic and optical media.

17. NACE Rev. 2 MANUFACTURING Detailed changes in NACE Rev. 2 – Section C
Manufacture of electrical equipment
▪ A series of activities were removed:
- manufacture of electrical parts for motor vehicle (generators, spark plugs
alternators, cable sets, etc);
- manufacture of computer cables;
- manufacture of electronic wiring devices (connectors, switches, etc.).
Manufacture of machinery and equipment n.e.c.
▪ Enlarged with:
- manufacture of office machinery (except multi-task office machinery);
- manufacture of aircraft launching gear, aircraft carrier catapults;
- manufacture of off-road dumping trucks;
- manufacture of automatic bowling alley equipment;

18. NACE Rev. 2 MANUFACTURING Detailed changes in NACE Rev. 2 – Section C
Manufacture of motor vehicles, trailers and semi-trailers
▪ Division complemented with:
- manufacture of starting motors;
- manufacture of car seats;
- manufacture of electrical signalling equipment for motor vehicles;
Manufacture of other transport equipment
▪ This division has been extended with:
- manufacture of military fighting vehicles (tanks, amphibious vehicles);
- manufacture of intercontinental ballistic missiles (ICBM) and similar
missiles;
- manufacture of railway car seats and aircraft seats;
- manufacture of baby carriages.

19. NACE Rev. 2 MANUFACTURING Detailed changes in NACE Rev. 2 – Section C
Manufacture of furniture
▪ Manufacture of seats for motor vehicles were removed;
Other manufacturing
▪ A true residual division, significant reduced;
Repair and installation of machinery and equipment
▪ A group covering repair and maintenance of machines and equipments –
capital goods (apart from motor vehicles, computers/peripheral equipment
and communication equipment);
▪ A group covering installation of industrial machinery and equipment –
(apart from installation in construction - elevators, escalators, automated
doors, etc.).

20. ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section D
ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY
Details concerning ELECTRICITY AND GAS
▪ Electricity – different classes for transmission, distribution and trade;
▪ Gas – separate classes for distribution and trade;
Note: transmission for gas means
transport “through mains” .
Details concerning STEAM AND AIR CONDITIONING SUPPLY
▪ Absence of the explicit expression “hot water supply” from the class name
could generate a wrong interpretation of the class content;
▪ Manufacture of edible ice has been included in this class, together with the ice
for cooling purposes;

21. WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section E
WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES
▪ A section dedicated to the activities related to environment.
▪ Distinction between “operation of irrigation canals” (here) and
“operation of irrigation systems” (in agriculture).
▪ Waste collection and treatment split in two groups.
- for each group a distinction between hazardous and non-hazardous
▪ Recovery and not Recycling (wording change for more precision)
- one class for all types of secondary raw materials (metal and non-metal).
▪ Street sweeping and snow and ice removal were removed from remediation
activities.
- to the cleaning activities.

22. NACE Rev. 2 CONSTRUCTION Detailed changes in NACE Rev. 2 – Section F
▪ Development in Construction instead of Real estate services.
▪ Civil engineering works restructured (three groups):
- Transport projects (roads and railways, including tunnels and bridges);
- Utility projects (pipelines, water, sewerage, electricity, communications);
- Others (water projects, industrial plants, outdoor sport facilities).
▪ Construction installation, completion and finishing.
- Slightly restructured;
- No specific group and class for rentals of construction or demolition
equipment.

23. WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section G
WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES
Wholesale and retail trade and repair of motor vehicles and motorcycles
▪ Retail sale of automotive fuel moved to division for retail trade;
▪ Towing and road assistance moved to section “Transportation and storage”
Wholesale trade, except of motor vehicles and motorcycles
▪ Some details (requested by EU) such us: wholesale of watches and jewellery
and wholesale of office furniture.
Retail trade, except of motor vehicles and motorcycles
▪ Details for retail trade via stalls and markets: food/beverages/tobacco,
textiles/wearing apparels/leather and other goods;
▪ Repair of personal and household goods moved to section “Other services
activities”.

24. ACCOMODATION AND FOOD SERVICE ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section H and I
TRANSPORT AND STORAGE
▪ Transport activities were structured on two criterions:
- first criterion – transport modes (land, water, air);
- second criterion – distinction passengers vs. freight.
Note: the second criterion could generate some problems
regarding the main activity of transport operators (units).
▪ Travel agencies and tour operators moved in section “Administrative and
support service activities”.
- these activities were “high” at division level.
ACCOMODATION AND FOOD SERVICE ACTIVITIES
▪ Distinction between catering for events and for a specific period of time (usually
long term contracts).

25. INFORMATION AND COMUNICATION
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section J
INFORMATION AND COMUNICATION
▪ A totally new section grouping all activities linked to information generally
disseminated, containing:
Publishing activities;
Motion picture, video and television programme production, sound recording
and music publishing activities;
Programming and broadcasting activities;
Telecommunications;
Computer programming, consultancy and related activities;
Information service activities ;

26. Section J: “Information and Communication”
Includes:
Creation and processing of information and cultural products
Distribution/publishing of these product
Information technology services
Information and cultural products
Value lies in content, not in format
Protected from unlawful reproduction by copyright laws
ISIC Section J is a way of defining the “Information Sector”
Creation of content/information
Distribution of content/information
OECD has defined an “ICT Sector”
Manufacture and wholesale of IT equipment
We see that these definitions are different
The “ICT Sector” is also available in ISIC as an alternative aggregation

27. Section J: “Information and Communication”

28. Section J: “Information and Communication”
Division 58: Publishing activities
Publishing is:
Acquisition of copyrights
Making content available to public (print, electronic, etc.)
Publishing is not:
Creation of content
Printing or other reproduction (found in division 18)
This division contains most publishing activities, but not:
Publishing of motion pictures (division 59)
Music publishing (division 59)
Broadcasting (division 60)

29. Section J: “Information and Communication”
Division 59: Motion picture, video and television programme production, sound recording and music publishing activities
Contains activities related to:
Recording
Production
Distribution
Projection
of:
Motion pictures
Sound master recordings (including music)
Individual radio and TV programmes (“non-live content”)
Also contains:
Music publishing (audio and printed music)
Does not contain:
Broadcasting
Video rental
Retail sale of film productions
Reproduction of recordings

30. Section J: “Information and Communication”
Division 60: Programming and broadcasting activities
Special case of publishing
Basically: radio and TV
Distinguishing feature: programming
assembling together audio/visual components into a complete daily programme.
Also: production of own content, including live content
The actual transmission can be carried out by the same or a different unit.
But if all you do is transmission, you are classified in division 61.
Being in division 60 requires that you are involved in shaping the content in some way.
Programmes can be transmitted in several ways, such as over the air, by satellite, by cable or over the internet

31. Section J: “Information and Communication”
Division 61: Telecommunications
This division contains activities related to provision of telecommunications
“Telecommunications”: transmission of audio, video, text or other data)
Units classified here are engaged in the transmission, but not in content creation
If you are producing content AND broadcasting it  you are in Division 60 – “Broadcasting”.
If you broadcast on behalf of others, you are in Division 61
If you provide on-line content or software, you are in Division 58 or 59. If you only provide the technical means for transmitting the content, you are here.
This division is broken down by type of infrastructure operated.

32. Section J: “Information and Communication”
Review: Division 59 – 61 and radio/television- related activities
To summarize this important point:
Making of individual radio/TV recordings  Division 59 – “Motion picture, video and television program production, sound recording and music publishing activities”
Assembling of radio/TV recordings into complete daily programmes (schedules), whether or not combined with transmitting  Division 60 – “Programming and broadcasting activities”
Transmitting finished radio/TV daily programmes (schedules), without any involvement in the shaping of the content  Division 61 – “Telecommunications”

33. Section J: “Information and Communication”
Division 62: Computer programming, consultancy and related services
Provision of IT expertise
Writing, modifying, testing, supporting software
Planning/designing computer systems
On-site computer systems management and operation
Etc.
Breakdown into 4 classes

34. Section J: “Information and Communication”
Division 63: Information service activities
Group
Class
Title
63.1
Data processing, hosting and related activities; web portals
63.11
Data processing, hosting and related activities
63.12
Web portals
63.9
Other information service activities
63.91
News agency activities
63.99
Other information service activities n.e.c.

35. Section K Financial and insurance activities
This section includes financial service activities, including insurance, reinsurance and pension funding activities and activities to support financial services.
Subdivised into 3 divisions:
64 – Financial service activities, except insurance and pension funding
65 - Insurance, reinsurance and pension funding, except compulsory social security
66 - Activities auxiliary to financial services and insurance activities

36. Section K (cont.) Mind the wording “Holding”
This section also includes the activities of holding assets, such as activities of holding companies and the activities of trusts, funds and similar financial entities.
Activities of holding companies
activities of holding companies, i.e. units that hold the assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose principal activity is owning the group
Mind the wording “Holding”
limited to holding without management
if management: in professional and technical activities
Trusts, funds and similar financial entities
This class does not describes activities but units
When the production of an enterprise takes place in two or more different establishments, certain ancillary activities may be carried out centrally for the benefit of all the establishments collectively. For example, the purchasing, sales, accounts, computing, maintenance or other departments of an enterprise may all be the responsibility of a head office located separately from the establishments in which the principal or secondary activities of the enterprise are carried out.

37. FINANCIAL AND INSURANCE ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section K
FINANCIAL AND INSURANCE ACTIVITIES
▪ Activities of holdings, without active management;
▪ Reinsurance, introduced at group and class level;
▪ More details in auxiliary activities to insurance (class level): risk and damage
evaluation, agents and brokers activities, found management activities.
activities of holding companies, i.e. units that hold the assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose principal activity is owning the group

38. REAL ESTATE ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section L
REAL ESTATE ACTIVITIES
▪ A completely independent section, created for its dimension and importance
into the System of National Accounts;
Also included is the building of structures, combined with maintaining ownership or leasing of such structures.
▪ Development and selling of real estate moved to section “Construction”;
Organized into 3 groups
Buying and selling of own real estate   Rental and operating of own or leased real estate  68.3   Real estate activities on a fee or contract basis

39. PROFESSIONAL, SCIENTIFIC AND TEHNICAL ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section M
PROFESSIONAL, SCIENTIFIC AND TEHNICAL ACTIVITIES
▪ This section is a part from the former “Business services”, grouping specialised
professional, scientific and technical activities. The section cover:
Legal and accounting activities;
Activities of head offices; management consultancy activities;
▪ including active management of holdings.
Architectural and engineering activities; technical testing and analysis ;
Scientific research and development;
▪ including a class for R&D in biotechnology.
Advertising and market research;
These activities require a high degree of training, and make specialized knowledge and skills available to users.
Other professional, scientific and technical activities ;
▪ distinct classes for: “specialised design” and “translation and interpretation” .
Veterinary activities ;

40. ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section N
ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES
▪ Section covering activities that support general business operation.
Rental and leasing activities ;
▪ enlarged with leasing of “non financial intangible assets”.
Employment activities ;
▪ enlarged and split - three classes instead of one class.
Travel agency, tour operator reservation service and related activities ;
Security and investigation activities ;
▪ enlarged with selling, installation and repair of security alarm systems in
connection with later monitoring.
This section includes a variety of activities that support general business operations. These activities differ from those in section M, since their primary purpose is not the transfer of specialized knowledge
Renting is enlarged to “non financial intangible assets”
77.40
Services to buildings and landscape activities ;
▪ “combined” facilities support activities – a combination of support services.
Office administrative, office support and other business support activities ;
▪ “combined” office administrative activities – a set of administrative services.

41. PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section O and P
PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY
▪ Section unchanged, apart from few minor content corrections.
- administration of government owned or occupied buildings moved into
services to buildings;
- administration (maintenance and storage) of government archives
moved into library and archives activities.
EDUCATION
▪ The categories in this section are based on the levels of ISCED 1997;
Section P describes activiyies carried out by public administration
It is not based on institutional units
▪ The section has been enlarged with:
- sports, recreational and cultural education;
- educational support services.

42. HUMAN HEALTH AND SOCIAL WORK ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section Q
HUMAN HEALTH AND SOCIAL WORK ACTIVITIES
▪ Section containing three divisions instead of one;
Human health activities;
▪ veterinary activities removed.
Residential care activities;
▪ possible difficulties in classifying the units, depending by national legislation –
hospitals vs. residential care (e.g. home-hospital for elderly)
Social work activities without accommodation;

43. ARTS, ENTERTAINMENT AND RECREATION
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section R
ARTS, ENTERTAINMENT AND RECREATION
▪ Section structured in four new divisions, as follows:
Creative, arts and entertainment activities;
▪ live performing arts grouped in a distinct class.
Libraries, archives, museums and other cultural activities;
▪ a change in hierarchy, from group level to division level.
Gambling and betting activities;
▪ these activities were “high” at division level, from class level, considering
their economic significance for some countries.
This section includes a wide range of activities to meet varied cultural, entertainment and recreational interests of the general public, including live performances, operation of museum sites, gambling, sports and recreation activities
Sports activities and amusement and recreation activities;
▪ fitness facilities included in sports activities as a distinct class.

44. OTHER SERVICE ACTIVITIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section S
OTHER SERVICE ACTIVITIES
▪ This section is a part from the former “Other community, social and personal
service activities”, structured in three divisions:
Activities of membership organisations;
▪ the same content and structure as in NACE Rev
Repair of computers and personal and household goods;
▪ a grouping of repairs other than equipment and motor vehicle repairs.
▪ repairs of telecommunication equipment included.
▪ repair and restore of furniture included.
This section (as a residual category) includes the activities of membership organizations, the repair of computers and personal and household goods and a variety of personal service activities not covered elsewhere in the classification
Other personal service activities;
▪ no real change, just “fitness facilities” and “yoga instruction” removed.

45. ACTIVITIES OF EXTRATERRITORIAL ORGANISATIONS AND BODIES
NACE Rev. 2
Detailed changes in NACE Rev. 2 – Section T and U
ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS AND SERVICES PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN USE
▪ the same content as in NACE Rev
ACTIVITIES OF EXTRATERRITORIAL ORGANISATIONS AND BODIES
▪ the same content and structure as in NACE Rev

46. Section T
Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use
This section covers activities of households that are intended for own consumption
Out of scope of business surveys
However, information on such activities is necessary for the National Accounts
Subdivised into 2 divisions
97 Activities of households as employers of domestic personnel
98 Undifferentiated goods- and services-producing activities of private households for own use

47. NACE Rev.2
Thank you!