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Production in construction

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Statistics Norway 

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Name of indicator/source: Production index for construction

15 May 2025

List and definition of variables: Hours worked: calculation of hours worked is estimated according to a formula from Statistics Norway’s Labour Accounts. The formula is used to calculate quantities for hours worked in the national accounts. The hours are calculated for each active employment. The hours are then aggregated on establishments and then on industry subclasses where the lowest level is 4-digit NACE. Hours worked by labour hired from employment agencies or employees on holiday, on strike, ill or laid off are not included.

Planned changes in information collected: None

Accounting conventions: The reference period is the month of the year

Reporting unit : Establishment. An establishment is defined as a locally limited functional unit that mainly conducts business within a specific industry group (Standard for industry groupings).

Observation unit(s) : Establishments.

The Statistical population covers all activity in the construction industry section F. The observation unit is establishments.

All regions of Norway are covered.

Month

Measurement errors in reporting to the A-ordningen are caused by the respondent’s internal system for obtaining the data. Examples are misunderstandings in the completion of the A-ordningen or errors in the data of the respondent. To avoid this, great emphasis has been placed on clarity in the guidance to the A-ordningen and controls in the reporting solution.

Processing errors may occur when Statistics Norway processes the data. This may be due to technical errors in the programs used to produce the statistics or in the connection of various data sources. We have a comprehensive control system to avoid processing errors.

Errors of non-response refer to error that is either due to unit dropout, i.e. that the unit has failed to answer, or partial dropout, i.e. that the unit has failed to answer at least one of the questions in the survey. In the production of the index it can occur that some companies do not meet deadlines for reporting to the A-ordningen. To reduce the effect of this, the previous month will be revised with a newer version of the reporting which also includes any missing units in the first version. To correct this the first version of A-ordningen is adjusted by factors calculated between the first and second versions of data from the same month the year before on the 4-digit NACE.

Coverage errors refer to errors in registers that define the population, in this case the Central Register of Establishments and Enterprises. As a result of such errors, units may be incorrectly included in or excluded from the population. Other problems are related to delays in the update of the registers and units that are incorrectly classified. From experience, a limited share of the population units is incorrectly classified. This is usually due to misleading or insufficient information at a certain time. No calculations on the size and significance of such errors have been carried out. However, such errors are not considered to be greater than for other quantitative short-term statistics.

Modelling errors are mainly related to problems with the seasonal adjustment of time series. Such problems are caused by deviation from the conditions that form the basis for the model used. Typical problems are related to movable public holidays such as Easter and Pentecost. X13-ARIMA generates a number of indicators that are used to evaluate the quality of the seasonal adjustment. These indicators have identified a stable seasonal pattern.

The production index is based on estimated hours worked in the construction sector as an input variable. The construction total index is calculated on the basis of an estimate of total hours worked. Monthly calculated hours worked in year t are compared with calculated hours in year t-1. This provides a basis for calculating the short-term index for the industry. An unadjusted short-term index of 105 then shows an increase of 5 percent compared to an average of last year's calculated hours.

 In order for the aggregate indices to be able to absorb changes in the relative relationship between the industries, aggregated indices are calculated by weighing the short-term indices at the lowest level (4-digit NACE) together. Value added at factor prices from the statistics Structural business statistics for year t-3, is used as weights. The weights are updated annually.

The short-term index is chained to the average long-term index from the previous year. This must be done to be able to compare the indices over time. Chained indices are calculated with reference year 2015 for industry section F

Estimates for non-response: No

Estimates for grossing-up to population levels: Not relevant

Type of index: Calculated according to Laspeyres formula

Method of weighting and chaining: The short-term index is chained to the average long-term index from the previous year. This must be done to be able to compare the indices over time.

Chained indices are calculated with reference year 2021 for industry section F, at industry divsion (2-digit NACE), and at industry group (3-digit NACE).

Type of source: Administrative data.

Frame on which the source is based: Statistics Norway receives monthly registry data concerning jobs, remunerations, and taxes (including payroll taxes) through a-ordningen, which was established in 2015. This is a mandatory electronic reporting system for anyone who has employees or who pays salary, pension, or other benefits. The Central Register of Establishments and Enterprises is used to defne the population.

Sample or census: Census

Criteria for stratification: Not relevant

Threshold values and percentages: Not relevant

Frequency of updating the sample: Not relevant

The frequency of dissemination is monthly.

Timeliness: The statistics are published 30 days after the end of the month

Timetable of data collection: not relevant

There are no geographical considerations. The figures are published on national level.

From 1995 to 1998 the index for new buildings were calculated from a model based on new buildings started from the building register in the Matrikkel (official registert of property), and the rest was based on employment figures. In 1999 the Matrikkel was not used because of reporting delay in register. The calculation method was changed in 2000. From the 1st quarter of 2000 the calcualtion of the production index is based on measuring the number of hours worked. Earlier, it was based on employment figures. The quarterly figures calculated after 1999 are therefore not directly comparable with the figures before the 1st quarter of 2000.

Before the second quarter of 2004, contracted labour was not included. From the second quarter of 2004 labour hired from emplyment egencies was included. This was however reversed in 2011 as it often occured that the companies did not include labour hired from employment agencies when  estimating hours worked in construction industry. 

The production index for construction changed frequency from quarterly to monthly publications from the statistical month January 2022 and onwards. Additional changes are introduced at the publication levels. This means that one shifts from publishing by type of building and construction activity (CC code) to industry section F using the Standard industrial classification (SIC2007). Publication will be detailed at the level industry group (3-digit NACE). The change is a result of the introduction of a new European regulation for business statistics called European Business Statistics (EBS). Simultaneously both the data source and the calculation method will change. The new production index is based on estimated hours worked from A-ordningen in combination with weights from the statistics Structural business statistics.