Exploratory Supply and Use Tables at previous year prices

for the years 2006 and 2007

(A framework for measuring economic growth)

A new exploratory set of Supply and Use tables at previous year prices for 2006 and 2007 have been published today by the Central Statistics Office (CSO). The CSO publishes Supply and Use tables in current prices annually. The first estimates of Supply and Use tables at previous year prices (PYP) are provided in this publication. The tables produced relate to the years 2006 (in 2005 prices) and to 2007 (in 2006 prices).

These tables are exploratory in nature and mark the beginning of a program which will see similar tables produced annually, in conjunction with the corresponding current price tables. One of the main benefits of tables at previous year prices is that they enable the “real” or “volume” annual growth in Gross Value Added (GVA) of individual sectors of the economy to be calculated. The methodology for compiling Supply and Use tables in PYP will be assessed on an ongoing basis in the light of experience and taking account of new data sources which may emerge in future years.

Supply and Use tables in current prices are produced within the National Accounts program to provide a framework in which the results of the different methods of compiling GDP can be compared. Their compilation provides feedback which ultimately leads to a balanced and more accurate estimate of GDP. Equally, Supply and Use tables in PYP are produced for essentially the same reason i.e. to estimate GDP in PYP. This, in turn, is carried out with a view to facilitating the production of more robust estimates of growth or volume change in GDP. It is the volume change in GDP (i.e. the change in GDP with price effects removed) which is of most interest for economic analysis. Volume changes in GDP and some of its components are currently compiled and published quarterly and annually in the National Accounts releases and publications of the CSO. However these volume estimates are of necessity less detailed than those prepared in this exercise¹.

Estimates of annual volume changes for individual business sectors in the present exercise are essentially derived by comparing GVA for the particular business group in year T in PYP with GVA in year T-1 in current prices for the same business group. The availability of the current price Supply and Use tables enables gross outputs and intermediate inputs to be separately deflated (i.e. double deflation) – a technique not normally available in the more timely quarterly and annual National Accounts volume estimates. A summary of volume growths for the years 2005 to 2006 and for 2006 to 2007 is provided below.

2005-2006

“Business Services²” showed the greatest GVA growth in absolute terms between 2005 and 2006 at €1.983 billion followed by “Education and health³” at €1.262 billion and by the “Manufacturing sector⁴” at €827 million. The “Agriculture, forestry and fishery⁵” sector declined slightly by €87 million between 2005 and 2006

Further examination of the “Business services²" sector reveals that “Computer and related services⁶" showed the greatest increase in GVA (+€1.48bn) followed by “Renting services of machinery and equipment⁷" (+€567m). On the other hand the GVA for the “Research and development & Other business services sectors⁸" fell by €421 million.

2006-2007

In contrast to the 2005-2006 period, the “Manufacturing sector⁴” far outpaced any of the other sectors in the additional GVA it generated in 2007 compared with 2006 (+€6.66bn). “Financial intermediation⁹” increased by €1.605 billion and “Distribution services¹⁰" increased by €1.544 billion in 2007 compared with 2006. “Business services²” actually declined by €864 million between 2006 and 2007.

In further disaggregating the “Manufacturing sector⁴” it can be seen that “Electrical and Optical products¹¹" generated the greatest additional GVA in 2007 (+€2.765bn) followed by “Chemical products¹²" (+€1.646bn) and the “Food, beverages and tobacco¹³" industries (+€809m). In fact none of the manufacturing sectors distinguished at this level declined in 2007 relative to 2006. All of them showed some increase in GVA.

Copies of the publication are available from:

The Central Statistics Office, Information Section, Skehard Road, Cork.

or

The Government Publications Sales Office, Sun Alliance House, Molesworth Street, Dublin 2.

Price: €12

Exploratory Supply and Use tables at previous year prices for the years 2006 and 2007 (A framework for measuring economic growth) is available on the CSO website:  

For further information contact:

Paddy McDonald (Senior Statistician)                   01 498 4320.

LoCall                                                               1890 313 414 ext 4320

Mark Manto (Statistician)                                     01 498 4204.

LoCall                                                               1890 313 414 ext 4204

E-mail nat_acc@cso.ie

Central Statistics Office                                                                                                  25 October 2012

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