Supply and Use Tables show what products are used and which sectors use them. There are two main tables, one for supply and one for use.
The Supply Table shows the supply of goods and services into the Irish economy divided into around 60 products. The products (both goods and services) supplied in this economy either come from Output of domestic enterprises or are Imported. The domestic enterprises are divided into around 60 sectors or industries, and the Supply Table shows how much of each product comes from each sector. The supply of product groups is presented in the rows going across while the columns going down show the industry groups that produce these goods and services.
The values shown in the Supply Table are Basic Prices, that is, the amount retained by the producer which is the price most relevant for the producer’s decision making. The price you pay for goods are purchaser prices, and they usually include a trade margin and product Taxes. The trade margin is the amount earned by reselling the product after it has been manufactured or imported. For example, a shopkeeper will buy goods and resell them at a higher price: the difference in price is the trade margin. Taxes and trade margins are shown as separate items in the Supply Table.
Firms are classified by industry according to the product that accounts for the largest part of their Output, but many firms also produce secondary products. For example, the food industry mostly produces food products, but it also produces research and development services. At the same time, most food products are supplied by the food industry, but some are also produced by other sectors such as agriculture. This relationship between products and sectors creates a diagonal line in the Supply Table as most products come from a single industry, and most industries predominantly make one kind of product. The principal production is shown on the diagonal elements of the Supply Table, while the secondary production is shown on the off-diagonal elements.
The Use Table shows how the products of the Irish economy are used as Intermediate Consumption, Final Consumption, Capital Formation and Exports. As in the Supply Table, products are grouped into around 60 categories. The Intermediate Consumption is broken down by the industries that use the products (around 60 sectors). The Final Consumption is broken down into Government, Households and Non-Profits.
The products used are presented in the rows going across while the columns going down show the industry groups that use these goods and services, as well as the Final Consumption, Capital Formation and Exports of each product.
Additional information for each industry is shown below the rows of products used in Intermediate Consumption. These rows give estimates of the components of the Gross Value Added (GVA) of each industry. These are in the form of Compensation of Employees (COE), non-product Taxes (for example, rates) and non-product Subsidies (for example, employment subsidies), Net Operating Surplus (or profits) and Consumption of Fixed Capital (this encompasses depreciation and amortisation). Net Operating Surplus and Consumption of Fixed Capital, when combined, are referred to as Gross Operating Surplus (GOS).
The sum of these rows is the GVA of the industry and is equal to the Output of the industry minus its Intermediate Consumption costs.
The Supply and Use Tables are balanced with each other. The total supply of each product in the last column of the Supply Table is equal to the total use of the product in the last column of the Use Table. Similarly, the total Output of each industry in the last row of the Supply Table is equal to the sum of the Intermediate Consumption and Value Added of that industry, which is the last row of the Use Table.
Supply and Use Tables provide a very comprehensive picture of the economy. They are generally consistent with the Annual national Accounts (formerly National Income and Expenditure), but provide far more detail on products and industries.