Hungarian Central Statistical Office

Sectoral Statistics Department

Keleti Károly Str. 5–7, H-1024 Budapest, Hungary

The Annual Survey of Industrial Products covers the data on the production and turnover of industrial products and services in terms of volume and value as well. Data of subcontracted operation are also available by products.

We distinguish two types of production: production on own account and sub-contracted production. So in the Hungarian PRODCOM questionnaire the data providers could report product data in two rows ("T" - total production and "B" - sub-contracted production).

All of our surveyed variables are available for both types of production.

Surveyed variables are the following:

• Total Quantity produced
• Quantity sold
• Net sales value of industrial products and services broken-down by domestic and export sales.
• Registration tax, excise duty and public health product tax

According to the EBS Regulation in the PRODCOM data transimmison file the production under sub-contracted operations shall be completely separated from the sold production varibale. With the Hungarian indicators available from our questionnaire, all the required new variables could be produced.

The Hungarian Classification of Industrial Products (ITO) is a hierarchical classification containing products and services. (ITO'22 structure file is attached.)

ITO is the domestic version of PRODCOM list issued by Eurostat, it is applied from the 1st of January 2008 and it is used for observing industrial products and services.  

The structure of the 12-digit codes: 

• 1-4th digits identical with the Statistical Classification of Economic Activities in the European Community (NACE Rev.2.)
• 1-6th digits identical with the Classification of Products by Activity (CPA) 
• 7-8th digits corresponding to PRODCOM, in case of “HU” items codes are formed by HCSO 
• 9th digit is a further possibility for special domestic breakdown 
• 10-12th digits indicate the unit of measurement 

Links for the classifications:

• NACE Rev.2 (https://showvoc.op.europa.eu/#/datasets/ESTAT_Statistical_Classification_of_Economic_Activities_in_the_European_Community_Rev._2/data)
• CPA (https://showvoc.op.europa.eu/#/datasets/ESTAT_Statistical_classification_of_products_by_activity,_2.1_%28CPA_2.1%29/data)
• PRODCOM (https://showvoc.op.europa.eu/#/datasets/ESTAT_PRODCOM_List_2022/data)

The data suppliers of the “Annual statistical survey of production” are industrial enterprises selected by size classes of staff, furthermore, enterprises classified outside industry, with a more than 500 million HUF turnover from industrial activities or having run an industrial kind-of-activity unit (KAU) in the previous year.

• From enterprises classified to industry the following are selected to report annually on industrial production: all enterprises with 20 or more employees, and in some cases enterprises having 5-19 employees are observed as well. The aim of the selection is to cover at least 90% of the industrial production of each class.
• Non-industrial enterprises are observed if they reported industrial turnover more than 500 million HUF in the annual survey on performance statistics (SBS).
• Non-industrial enterprises with industrial KAU.
• Furthermore, some individually selected non-industrial enterprises having significant industrial sales and based on their principal activity classified to trade (for example hypermarkets).

Total production of industrial products: the data of products produced by the enterprises classified into the industry, respectively those of produced by the enterprises classified out of industry according to the structure of Classification of Industrial Products (ITO).

Total sales: the net sales value of industrial activities

Export sales: value of the sales of own-produced industrial products and industrial products produced by subcontractors effectuated in the turnover of external trade to foreign buyers, respectively, as well as the current HUF value of the industrial services provided to foreign buyers, paid with foreign exchange, import purchase or HUF. The export sales are defined as sales over the border of Hungary. Export sales include the dispatches to the Member States of EU, too. Sales for enterprises with Hungarian tax number, but having headquarters of abroad have to be accounted as export sales.

Domestic sales: value of the sales of own-produced industrial products and industrial products produced by subcontractors effectuated in the turnover of domestic trade as well as the value of the industrial services provided at home. The domestic sales are defined as sales within the border of Hungary. Value of the sales to enterprises operating on custom free zones and from enterprises operating on custom free zones to enterprises operating at home are accounted as domestic sales.

Sub-contracted operation: In case of sub-contracted opeartions the sub-contractor performs certain techonolgical processes and operations on the material or semi-finished product provided by the principal. The material and semi-finished product taken over for the sub-contracted work is not purchased by the sub-contractor, but remains the property of the principal. The production of a new product can be considered if the sub-contractor carries out the entire technological process, all the operations of converting the material into a finished product. An item is defined to be a new product if the PRODCOM code of the received material and the new product are different. According to the EU regulations, the production of a new product carried out under sub-contracted operation is considered as production of a new product. Consequently the production and sales data of these product should be reported as product  data not as service. Only the partial machining under sub-contracting agreement could be taken into account as service. We distinguish two types of production: production on own account and sub-contracted production. So in the Hungarian PRODCOM questionnaire the data providers could report data in two rows ("T" - total production and "B" - sub-contracted production where "B" is part of "T"). We have information about the sub-contracted data, but we do not have information about the sub-contracted relationship. 

Currently the observation unit in Hungary is the legal unit.

The data providers of the “Annual survey of industrial products” are industrial enterprises selected by size classes of their number of employees, furthermore enterprises classified as non-industrial with a more than 500 million HUF turnover from industrial activities or having run an industrial kind-of-activity unit (KAU) in the previous year.

The frame of observation is all enterprises classified to industry (divisions from 05 to 35 of NACE Rev.2), as well as non-industrial enterprises pursuing industrial activities too, recorded in the Business Register.

At European level: EU Member States

At national level: the whole country

Data are available from 1996 onwards. There was a change in the domestic nomenclature in the year 2008 (BTO was changed for ITO).

Data from 2003 onwards are available at http://statinfo.ksh.hu/Statinfo/themeSelector.jsp?page=2&szst=OID&lang=en.  

Older data are available only in elecronical archive of Hungarian Central Statistical Office (can be provided by request).

There is no base period

Data are disseminated in:

• natural units, based on the PRODCOM list
• national currency HUF (Hungarian Forint)

Year 2022

At European level:  

• Commission Implementing Regulation (EU) 2022/2552 (EUR-Lex - 32022R2552 - EN - EUR-Lex (europa.eu)) 
  
• Commission Implementing Regulation (EU) 2020/1197 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R1197&qid=1661935736948)
• Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics, repealing 10 legal acts in the field of business statistics (Text with EEA relevance) (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2019.327.01.0001.01.ENG)
• Commission Regulation (EU) No 1209/2014 of 29 October 2014 amending Regulation (EC) No 451/2008 of the European Parliament and of the Council establishing a new statistical classification of products by activity (CPA) and repealing Council Regulation (EEC) No 3696/93 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.336.01.0001.01.ENG)
• Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32006R1893)

At national level:

• Decree No. 16/2011 (V.10.) of the Minister of Public Administration and Justice on the introduction and application of the Industrial Product Classification (ITO) (Decree No. 16/2011 (V. 10.) of the Minister of Public Administration and Justice on the introduction and application of the Industrial Product Classification (ITO) (ksh.hu)

All the non-confidential data are available on Eurostat dissemination website. Selected data are transmitted annually (in April) to the UN. There are also other ad-hoc data sharing at European level.

At European level: Regulation (EC) No 223/2009 on European statistics (https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32009R0223) (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.

At national level: Act No. CLV of 2016 on Official Statistics 

Eurostat offer passive confidentiality (as a possibility) – MSs applying passive confidentiality, have a much better transparency degree, offering more comprehensive information for all users.

In Hungary the data protection is under superior regulation (Act No. CLV of 2016 on Official Statistics), we cannot apply passive confidentiality.

We apply active confidentiality. General rule is that data are disclosed only if there are at least 3 reporting companies. In case of 3 or more data providers, data are public, with less than 3 respondents data are confidential. On the questionnaire there is a tic box with the question “I agree to disclose of my reported data by Central Statistical Office in accordance with the Law on Statistics. This contribution means knowledge of details”. If the respondent agrees with the disclosure of their data, data are public. In case of one respondent there is no problem, in case of two respondents data are only public if both of them agrees with the disclosure.

Annual preliminary data are available from 30 June, final data from 30 September.

After data transmission to Eurostat, data are made available (at domestic level) at https://statinfo.ksh.hu/Statinfo/themeSelector.jsp?&lang=en

Release calendar is for internal use, there is no public accessibility.

There is no public accessibility to the release calendar.

In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see item 10 - 'Accessibility and clarity') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users.

European level: annual

National level: annual

There is no press releases linked to the data industrial products.

Statistical Yearbook of Hungary – annual

The publications can be accessed at: http://www.ksh.hu/apps/shop.kiadvany?p_kiadvany_id=1056511&p_temakor_kod=KSH&p_lang=EN

National website can be accessed at: https://statinfo.ksh.hu/Statinfo/themeSelector.jsp?&lang=en (Data, publications/Dissemination database/Business statistics/Industrial products)

European level: http://ec.europa.eu/eurostat/web/prodcom/overview

No microdata are available

There is no other dissemination format

Detailed methodological information on national methodologies is available on national website (Data/ Metainformation/ Statistical Domains by subject/ Economic statistics/ Business statistics/ Industrial products - https://www.ksh.hu/apps/meta.objektum?p_lang=EN&p_menu_id=110&p_ot_id=100&p_obj_id=BCDB).

National quality report is available on the domestic internal website.

Since the year 2012 the data of suppliers have been entered via ELEKTRA system of HCSO.

The aspects of data validation are built into the data entry system already at the level of respondents, and they are updated generally once a year.

Business Statistics Data Collection Department use an intelligent data validation system (Data Entry and Validation System (ADEL)) for checking of questionnaires provided electronically.

During the macro-validation procedure we compare the aggregated data with indicators of the same content, arising from different sources, and investigate the deviations.

We check the completeness of quantity and value data. Product-level data of an enterprise are compared to those of the previous year, while the average product price of the enterprise to the average domestic price.

We check the coherence with other statistics.

Product data are compared to:

• cumulative monthly product data (the variable of „total production”), as well as,
• STS (Short-term statistics) data,
• annual performance statistics.

The 100 largest Hungarian industrial enterprises are checked according to strict rules (the deviation can be a maximum of +/- 10%, as compared to +/- 20% in case of smaller enterprises).

The general quality of data is very good due to built-in validation standards.

The quality improved highly until the introduction of on-line data collection (https://elektra.ksh.hu/).

After the introduction of the on-line data collection the quality is improving yearly due to continuous development system (depending on practical experience).

This year the deadline for the annual report was 31 May as usual, so we were able to perform the data consistency test with tax data for all data providers. There was no impact of the COVID 19 pandemic for the data quality.

Main users of annual survey of industrial products are:

1. Domestic data users:

• government authorities, organs of public administration (central and local)
• trade associations, research institutions, students
• enterprises
• media

2. Foreign data users:

• international institutions (UN, EUROSTAT)
• US Geological Survey (US Minerals)

3. Data users within the HCSO:

• national accounts use product data for the supply and use table
• the industrial producer price index uses product data for its weighting system

User satisfaction is measured by a survey sent to the significant data users. The Dissemination Department is responsible for the survey.

Annual product statistics are one of the most demanded industrial statistics. Users usually need as detailed product statistics as possible.

The only barrier to publishing product data is the confidentiality of data. The following variables are available both for own-produced and for sub-contracted produced products:

• total production (in quantities)
• sold quantities (export and domestic)
• sales values (export and domestic)

PRODCOM is essentially a cut-off sample. In theory, the Regulation (EU) 2022/2552 of the European Parliament and of the Council of 12 December 2022 on European business statistics, repealing 10 legal acts in the field of business statistics (Text with EEA relevance) prescribes that surveys must include all undertakings employing at least 20 employees. Small enterprises with less than 20 employees are exempted.

The other quality criteria is that data from undertakings should represent at least 90% of national production by NACE classes. To reach this criteria, we have to ask smaller enterprises than 20 employees in about the half of the NACE classes.

118 classes (out of 245) are over 90%, asking undertakings over 20; 74 classes are about 90%, asking undertakings over 10; it depends on the structure of the class.

As mentioned at previous sub-chapter, theoretically the small enterprises with less than 20 employees are exempted from the sample.

In practice to reach the 90% rule, we have to inquire also enterprises with less than 20 employees. 

In a few NACE classes, meeting the 90% criteria would be multiple burden to SMEs (where the majority of enterprises are around 5 employees, e.g. NACE classes in the 16 sector). In these cases (especially if the weight of the NACE class is low) we do not reach the 90%.

Non-response errors

Response rates are calculated based on the number of enterprises and also weighted by the sales of enterprises.

In general the occurrence of other non-sampling errors is very low since the introduction of Elektra system (on-line data collection).

Number of imputation (in case of all enterprises): 1% 

Unit non-response (in case of all enterprises): 17%

Number of imputation (in case of sub-contracting enterprises): 0,94%

The proportion of the sub-contracting enterprises: 5,8 %

Data correction is still in progress, for the final data transmission the response rate will improve slightly.

Annual preliminary data are available from 30 June (6 month after the reference period), final data from 30 September (9 month after the reference period).

Both preliminary and final data releases were delivered in due time.

There are no problems of comparability between the Member States. All country reports their data based on PRODCOM list, in the defined unit measures.

The Hungarian national nomenclature changed in the year 2008 (from BTO to ITO). From 2008 we have comparable time series.

From 1998 we could compare time series using correspondence tables between BTO and ITO (the former and the present national nomenclatures).

PRODCOM data reporting: Two industrial production variables were required by the first PRODCOM Regulation: sold production and total production. According to the EBS Regulation in the PRODCOM data transmission file the production under sub-contracted operations shall be completely separated from the sold production variable from the reference year 2021. We have collected separately the total production data and sub-contracted data. The PRODCOM data production methodology has been modified to comply with the new EBS requirements from the reference year 2021.

Product data are compared to:

• cumulative monthly product data (the variable of “total production”), as well as,
• STS (Short-term statistics) data,
• annual performance statistics.

The 100 largest Hungarian industrial enterprises are checked according to strict rules (the deviation can be a maximum of +/- 10%, as compared to +/- 20% in case of smaller enterprises).

Any lack of coherence in the output is impossible, because of the structure of the data collection and the on-line data collection system.

Data provider should fill in only primary data, summing up and further calculation prepared by statisticians.

In case of data collections designated in the Annex to Government Decree No 388/2017 (XII. 13.) on the extension of electronic data collection for statistical purposes, the data must be provided via the IT system designed for this purpose. Using the KSH-ELEKTRA electronic data collection system, the required data can be provided without paper, with an internet connection and in strict compliance with modern data protection guidelines. Since 1 January 2012, the data of the data providers have been entered via ELEKTRA system of HCSO. Product data supplied in the previous year had been pre-printed on the questionnaire until 2011, and have been pre-filled since 2012. The pre-filled questionnaire reduces the time needed for completion, thus the burden of the data providers.

The aspects of data validation are built into the data entry system already at the level of respondents, and they are updated generally once a year. Detailed checking of data and correction of errors is not automatic. This requires the cooperation between the staff of the Business Statistics Data Collection Department and the data providers.

Scheduled revision

• Routine revision

In June the published data for previous year are preliminary for Eurostat, the final data can differ from preliminary data at the end of September because of data corrections. Reported data for the previous year are checked systematically by regional departments between 1 June and 21 July. The data are compared with data of Annual and Monthly Performance Statistics reports, as well.

Additionally the Industry and Construction Statistics Section review the data in August and they ask for explanations for the extreme changes from enterprises through regional departments and if it is necessary, data will be modified.  In this period it can turn out the necessity of data correction of previous years’, as well.

The corrected finalized data are published at the end of September.

• Major revision 

There are no planned revisions. In case of changes in nomenclature we do not perform major revisions, figures can only be used in the nomenclature of the year. In case of nomenclature changes data from different years can be compared with help of correspondence tables.

Non-scheduled revision

This can happen in exceptional cases if an unforeseen event requires some data reviews (big data errors, technical problems, etc...). Non-scheduled revisions have not been conducted in the recent years.

In practice we do everything just like in the revision policy.

The data correction is still in progress. Revised data are available for final data transmission.

Data set is based on a cut-off sample survey via an on-line data collection system called Elektra. Data providers should fill in pre-listed templates. Rows of the nomenclature (national version of PRODCOM, called ITO) are pre-filled specific for the enterprise.

The gross sample size in 2022 was of 9.107 enterprises, while the net sample was of 7.539.

Annual (reference period: calendar year)

Data are collected via electronic on-line survey, at https://elektra.ksh.hu.

The questionnaire can be found in the Annex (see below in the Annexes section).

Since January 1, 2012, the data of suppliers have been entered via ELEKTRA system of HCSO.

The aspects of data validation are built into the data entry system already at the level of respondents, and they are updated generally once a year.

Business Statistics Data Collection Department use an intelligent data validation system (Data Entry and Validation System - ADEL) for checking of questionnaires provided electronically.

During the macro-validation procedure we compare the aggregated data with indicators of the same content, arising from different sources, and investigate the deviations.

We check the completeness of quantity and value data. Product-level data of an enterprise are compared to those of the previous year, while the average product price of the enterprise to the average domestic price.

Data are revised in September in order to correct detected errors.

Imputation

In case of non-responses respondents are contacted by telephone or e-mail.

Imputation may be necessary not only in case of unit non-response but also in case a particular item is missing. The most frequently used source of imputation is the report of the missing enterprise in the previous period.

An additional source of imputation may be the sales structure reported for the same reference period in the annual economic statistical survey, broken down by TEÁOR (NACE) classes. Class-level sales of an enterprise are broken down into product groups based on the domestic structure of industrial production.

Missing volume data of each product group are estimated from sales data, using the average domestic price of the particular product group.

Data on dead and non-operating units, as well as returned questionnaires containing no answers are not imputed.

We do not use any adjustment. 

If we detect an outlier we contact the data provider and ask about the reasons. The data provider could modify the outlier or justify and confirm it.

Questionnaire of the data collection can be found in the Annexes below.