Back to Top

 Skip navigation

Background Notes

Background Notes

Online ISSN: 2009-6291
CSO statistical release, , 11am

The main aggregates in the Supply and Use and Input-Output Tables for Ireland 2022 are consistent with the data in the Annual National Accounts 2024 (ANA 2024). All releases follow the European System of Accounts methodology (ESA 2010). 

The tables display details of the economy in terms of 62 industry groups and 62 product groups. The industry classification used is the two-digit level of the NACE Rev. 2 referred to as the A88 coding of industry activities. The product classification used is the equivalent CPA Rev. 2.1 grouping referred to as the P88. The tables are initially constructed using 88 industry and 88 product groups and are then condensed for confidentiality and quality purposes.

Production of the tables involves extensive use of CSO Structural Business Statistics data; the Census of Industrial Production (CIP), the Annual Services Inquiry (ASI), the Building and Construction Inquiry (BCI) and Industrial Production by Sector (PRODCOM). Data from National Accounts, International Accounts, External Trade Statistics, Government Accounts and Environment is also used in construction of the tables. As a result, balancing is necessary in the construction of the Supply and Use Tables, to align the National Accounts data with data from other surveys and areas. Allowances must be made for a lack of absolute accuracy in the figures in this release. These are overall estimates and not definitive data.

The basis of the methodology used is described in the Eurostat Manual of Supply, Use and Input-Output Tables and in the UN Handbook on Supply and Use Tables and Input Output Tables with Extensions and Applications.

Supply and Use Tables in Previous Year's Prices

The 2022 SUTs in current prices were deflated by the most appropriate price indices available to obtain the PYP versions of the tables. The metadata on the deflators used in the Supply and Use Tables can be found here: Supply and Use and Input-Output Tables 2022 Table 3.1 (XLS 50KB)

One of the benefits of SUTs in previous year prices is that they facilitate the compilation of volume changes from year to year in the value added generated by detailed business sectors. It is necessary to have Gross Value Added (GVA) in current prices for the previous year for the detailed business sectors to which the data in PYP relates. It is also necessary that both sets of data are comparable. National accounts data are regularly revised. If one set of data incorporates revisions that equally apply to the other but have not yet been incorporated in them then any comparisons can be affected by the methodological differences in the two sets of data. Volume changes derived alternatively by comparing GVA in current prices from the published 2021 SUTs (based on 2021 data in ANA 2023) with GVA in PYP from the 2022 SUTs in PYP (based on 2022 data in ANA 2024) will be affected by different data vintages. 

The 2022 SUTs are consistent with ANA 2024 in current and previous years prices. The Supply and Use Tables in previous year prices were mechanically balanced and adjusted to ensure aggregate and sub-aggregate consistency with the published National Accounts. The required intervention at an aggregate level is generally small. The tables are then re-balanced so that total deflated Supply equals total deflated Use for each product group. This usually involves adjusting domestic supply and intermediate consumption.

Note that GVA can be subject to extreme price movements using the double deflation method when current price GVA is a relatively small share of current price Output. Here are two simple examples.

Table 3.2: Industry examples
 Industry 1Industry 2
 Current €PYP €% Price changeCurrent €PYP €% Price change
Output100110-10%100110-10%
Intermediate consumption908110%504510%
Gross value added (GVA)1029-290%5065-30%

Consistency with other CSO Releases

The current price tables are consistent with the Annual National Accounts 2024 (ANA 2024) main aggregates.

Table 3.3 Consistency of 2022 Supply and Use Tables with ANA 2024
Aggregate          €m Supply & Use TablesANA 2024
Imports of goods and services (valued in f.o.b. in ANA and in c.i.f. in Supply table1,2)504,737 Supply tableitem 84
Product taxes28,396 Supply tableitem 52
Product subsidies-1,704 Supply tableitem 53
Household, NPISH and Government expenditure2182,531 Use tableitems 79 & 80
Gross fixed capital formation (including net additions to breeding stocks)109,682 Use tableitem 81 & 82(a)
Changes in inventories (incl. statistical discrepancy & excl. net additions to breeding stocks)12,431 Use tableitems 82, 85 & 82(a)
Exports of goods and services1,2720,812 Use tableitem 83
Value added at basic prices494,027 Use tableitem 32
Compensation of employees128,591 Use tableitems 2, 3, 9 & 10
Net Operating surplus242,463 Use tableitems 1, 4, 5, 6, 7, 8 & 12
Consumption of fixed capital121,828 Use tableitem 28
Other taxes on production4,091 Use tableitem 30
Other subsidies on production2,945 Use tableitem 31
1 Including c.i.f. (cost, insurance and freight) to f.o.b. (free on board) adjustment. Merchandise imports are valued f.o.b. for National Accounts purposes and c.i.f. in the External Trade statistics.
2 Including adjustments for expenditure outside the state and expenditure by non-residents.

Comparison with other CSO sources

Although the current price Supply and Use Tables are consistent with National Accounts data published in ANA 2024 and thereby consistent with the Balance of Payments data compiled by the CSO, it is not possible to achieve full agreement with all CSO releases. The exercise of compiling Supply and Use Tables helps to identify discrepancies that exist within different data sources. It is hoped that some of these discrepancies will be removed or reduced over time. There are four main reasons for differences between the aggregates in the Supply and Use Tables and those in other CSO data sources. Here are some examples of these.

Terminology

Differences in definitions occasionally occur across CSO releases. For example, the output in the Supply table is inclusive of freight and of the margin gained on goods resold without further processing. These two items may not be part of the term ‘production value’ in the CIP. Another example is that the term ‘Compensation of Employees’ in National Accounts includes the employer’s contribution to social insurance and other labour costs, which are not included in the wages and salaries variable in the CIP and ASI.

Accounting practices

Some international sales by Irish companies are included in the CIP gross turnover but are treated on a net basis (i.e. sales less purchases) in the Balance of Payments. This can arise particularly where Irish companies sell products abroad which they have also purchased abroad. The products purchased may never have come into Ireland or undergone any further processing following purchase by the Irish enterprise. Supply and Use adjusts the CIP data and includes the net amount as an export of a service. Conversely, there are companies manufacturing on a fee basis whose transactions may be recorded gross in the International Trade Statistics. This can arise where companies process goods for another company in their enterprise group abroad. The goods are imported and exported and may therefore have been included in the merchandise trade statistics although ownership of the goods did not change in the process. In these cases, the merchandise trade is usually adjusted to convert the goods imported and exported to a fee based service for use in the Balance of Payments and National Accounts. In the case of telecommunications, some of the turnover in the ASI arises from importing and exporting telecommunications services, whereas Balance of Payments uses a net treatment. Supply and Use adopts the Balance of Payments practice in these situations.

Classifications

Output by product may be classified differently in the PRODCOM Inquiry to the export statistics. This difficulty is corrected by realigning at a product level the production with the exports or vice versa. Sometimes the classifications in the two systems are quite unrelated. For example, what appears in one classification as a chemical may be classified as food and beverages in another system. Conflicts in classification also occur at the overall activity level of companies. The company’s NACE code in the National Accounts may differ from those used in other data sources. The Supply and Use Tables usually use the same NACE codes as those used in the income method in the latest ANA release.

Conflicting data

The Supply and Use Tables are compiled using data from different sources. It is therefore not surprising that there are occasional instances of contradictory and conflicting information. Some examples are: the value of production by a company, measured in the CIP, may be less than their exports, measured by the International Merchandise Trade Statistics; the value added of a company, measured by National Accounts from administrative sources, may not concur with the same variable derived in the CIP or the ASI; compensation of employees calculated in National Accounts based on employment figures can conflict with the wages and salaries figures in the CIP and ASI, which are assembled from company data. Reconciliation of these types of problems can result in differences between the variable presented in the Supply and Use Tables and the same variable in the CIP or ASI.

Multipliers

The Domestic IO Table is used to calculate Coefficients of domestic product flows and the Leontief Inverse of domestic flows with multipliers for other inputs. The Table of Coefficients explains the direct input requirements per unit of output, while the Leontief Inverse shows the inputs required per unit of final demand.

The Coefficients Table is calculated by dividing each cell of the Domestic IO Table by its column total. The column total is the total inputs/outputs value. In the new Coefficients Table each column sums to 1. In Table 2.9 (Domestic IO Table), for product*product of Agriculture (CPA 01) there is a value of €2,084m. Total inputs/outputs for this product category is €14,271m. The corresponding figure in Table 2.12 (Coefficients Table) is 0.14605 (€2,084m/€14,271m).

The Leontief Inverse is calculated as L = (I – A)-1 where:

  • L = Leontief inverse matrix
  • I = Identity matrix
  • A = Direct requirements matrix – Coefficients Table

The Leontief Inverse Table can be interpreted as follows, continuing with the Agriculture example in the Input-Output Tables chapter. Each €1 of final demand for domestic output of these products will require:

  • €1.19959 of domestically produced agriculture products
  • €0.00852 of domestically produced forestry products
  • €0.0009 of domestically produced fishing products

and so on down the column, which when summed together gives the Output multiplier. As mentioned, the Output multiplier shows how much direct and indirect output is required, across all domestic products per €1 of final demand for the products named at the top of the column. Note that this approach includes duplication of output. This is due to outputs measured as gross, rather than net value; duplication occurs where one product is involved in the production of another product and the cost being absorbed in the final value of that product, rather than adding to the final value.

The lower portion of the Leontief Inverse Table shows the direct plus indirect effect on other inputs per €1 final demand. In each column the sum of the coefficients of imports, taxes less subsidies, compensation of employees, consumption of fixed capital and net operating surplus add to 1. They show, after all the cycles of production are completed, how the additional unit of final demand was spread over these categories. There is no duplication in these coefficients.

Conventions used

The following conventions are used throughout the tables of this release:

  • " .. " is used to denote zero / not applicable
  • " 0 " represents less than €0.5 million but more than zero