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Production in construction

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Federal Statistical Office (DESTATIS)

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This indicator is part of the overall STS indicator system which supports business cycle observation. The objective of the production index is to measure changes in the volume of value added.

6 June 2025

The terms ‘production’ or ‘output’ in the sense of business cycle statistics exclude inputs from other units. The objective of the production index is therefore to measure changes in the volume of value added. Data on the change in value added are usually not available on a monthly basis. Therefore, value added is calculated for the base period only. The monthly continuation of value added in base period is done by suitable proxy values. Hours worked is an adequate indicator for continuation in case of long production processes. It is assumed that the development of outputs (products) directly correlates with the required inputs (hours worked).

Local unit.

Production activities of Section F of NACE Rev. 2, i.e. all size classes of NACE 43.2 and 43.3 as well as local units with 20 employees or more for other NACE Groups, are covered.

Country as a whole.

Month.

Deviations between the preliminary and the final results amount to a maximum of 0.5 percentage points.

Index.

Estimates for non-response are based on values of the preceding month which are still contained in the current statistical data reported. Basically, they are replaced by the rate of change of data received within the deadlines, which is then included in the index calculation.

Grossing up data to population results requires several steps. The raw figures collected monthly correspond to the number of hours worked on building sites in enterprises employing 20 persons or more. For NACE 43.2, 43.3, no information on hours worked is available on a monthly basis. Therefore, turnover gathered from administrative data is used for continuation here. Productivity factors are then applied to the development of hours worked to calculate the indices which are ideally compiled by dividing gross value added at factor costs by hours worked. Since gross value added is not available for the same periodicity, the productivity factor is approximated by using the annual accounts of the construction sector. More specific, deflated turnover is divided by hours worked.

These annual productivity factors form a step function. In order to avoid breaks at the end of each year, the productivity function needs to be smoothened. For the months at the end of the series, an expert judgment is necessary. To avoid inconsistent productivity estimation with the building investments calculation, this judgment is always coordinated with national accounts.

Turnover data for the section finishing trades come from the administrative data sources. These data are deflated with construction prices indices.

Construction indices are calculated according to a Laspeyres formula.

The weighting scheme is based on gross value added taken from the annual structure survey and from the annual investment survey.

The data set is based on statistical surveys (47.7%) and administrative databases (52.3%). The surveys are exhaustive and their coverage is updated yearly.

The frame on which the source is based is the national business register.

Monthly.

Preliminary results are published approximately 38 days after the end of the reference month (t+38). A final index calculation in regard to the annual correction is made after the completion of the 4th quarter (normally around February).

Consistent time series of the recent base year are available since 1991 since Germany is covered as a whole.

Consistent time series of the recent base year are available since 1991. Time series prior to 1991 refer to the former territory of the Federal Republic of Germany.

There are no breaks in the time series.