Industrial turnover index overview


Data extracted in April 2018.

Planned article update: August 2019.

Highlights


Figure 1: EU-28 Monthly index of turnover in industry, total, domestic and non-domestic, 2005 - 2017, seasonally adjusted data (2015=100)
Source: Eurostat (sts_intv_m), (sts_intvd_m), (sts_intvnd_m)

This article provides an overview of the development of the industrial turnover indicator in the European Union (EU), the euro area and the EU Member states over recent years and describes how it is compiled. The index of industrial turnover is a business cycle indicator which measures the monthly development of turnover in the European industry.

The data presented in this article are taken from European short-term statistics (STS) which are collected under the short-term statistics regulation. Industry turnover as presented in this article covers turnover in mining and quarrying and in manufacturing (NACE Rev. 2 sections B and C).


Full article

Overview

Industrial turnover data published by Eurostat distinguish between domestic turnover, i.e. turnover generated with sales to units in the same country and non-domestic turnover for sales from a business in one country to someone in another country (the non-domestic turnover data are further divided according to whether the buyer of the industrial goods has its seat in a euro area country or not). As Figure 1 indicates, the overall developments of domestic and non-domestic turnover data is somewhat different in level but the general patterns of domestic and non-domestic turnover are similar.

Figure 1: EU-28 Monthly index of turnover in industry, total, domestic and non-domestic, 2005 - 2017, seasonally adjusted data (2015=100)
Source: Eurostat (sts_intv_m), (sts_intvd_m), (sts_intvnd_m)

Industrial turnover in the EU-28 increased steadily until spring 2008 when a rapid decline set in (see Figure 1). Within a period of just over one year the index for European industrial turnover fell back to the level of 2005. Between April 2009 and July 2011, a steady increase brought turnover values almost back to the pre-crisis level. Since 2011 the three industrial turnover indicators showed different developments. Turnover from the domestic market decreased somewhat between 2011 and 2016 and has only recently started to grow again while turnover for the non domestic market has been on a relatively steady increase for the last eight years.

Table 1 shows the annual rates of change of industrial turnover (mining and quarrying and manufacturing) in the European Union, the euro area, the EU Member States and some other countries for which data are available (calendar adjusted data). During the growth phase between 2005 and 2008, all EU Member States (with the exception of Malta) continued their industrial expansion which had already started some years before. Particularly high average growth rates were experienced in Belgium, Bulgaria, Romania, Croatia and the Baltic countries. In 2009 industrial turnover dropped in all EU Member States.

Table 1: Turnover in industry, annual rates of change, 2005 - 2017, calendar adjusted data
Source: Eurostat (sts_intv_a)

For the countries which had experienced a rapid expansion before the downturn, the decrease was relatively high (in many cases more than 20 %), however almost all countries experienced decreases of more than 10 %. The only exception to this general rule was Poland where industrial turnover in 2009 decreased only moderately by –2.0 %. In the majority of countries, the upswing in 2010 and 2011 was almost as swift as the downturn in 2009 and thus many countries regained or almost regained their level of industrial turnover of the pre-crisis year.

For 2012 and 2013, however, this trend did not continue and overall growth rates were negative. In 2014 and 2015 European aggregates displayed a positive but moderate growth. In 2016 however industrial turnover declined in many countries and the EU as a whole recorded a stagnation. In 2017 however, all countries displayed relatively high positive rates of change and the EU achieved its biggest growth since 2009. The situation between countries varied a lot. Between 2005 and 2017, Cyprus, Luxembourg, and Malta displayed a reduction in the general level of industrial turnover, while in Bulgaria, the Baltic countries, Poland, and Romania the turnover level more than doubled.

Figure 2: EU-28 Monthly turnover and production in industry, 2005 - 2017, seasonally adjusted data (2015=100)
Source: Eurostat (sts_intv_m) and (sts_inpr_m)

Data sources

The definition of turnover is rather straightforward. It comprises basically what is invoiced by the seller. Rebates and price deductions are taken into account as well as special charges that the customer might have to pay. Turnover does not include VAT or similar deductible taxes.

Information on industrial turnover is often collected by business surveys. However, quite a number of National Statistical Institutes rely on administrative sources, i.e. VAT declarations, to obtain the data.

According to the short-term statistics regulation data on service turnover have to be made available by the National Statistical Institutes on a monthly basis. European aggregates are calculated by summing up weighted national indices. The weights correspond to the share of the countries in the turnover of industrial activities in the base year.

All results for the indicator of turnover in industries are published on the Eurostat website.

Context

The turnover indicator in industry represents the development of sales in industry. It is therefore a value indicator which is influenced by two factors: changes in prices of the traded industrial goods and changes of the traded volumes of goods. Apart from the influence of price changes which constitute a differences between turnover and production volumes there are also some other methodological differences, e.g. production figures include stocked good which are not yet sold. Nevertheless the connection between both indicators is relatively close as is indicated by Figure 2 which represents the seasonally adjusted monthly indicator values for turnover and production in industry for the years 2005 - 2017.

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Industry (NACE Rev.2) (t_sts_ind)
Industry turnover index (NACE Rev.2) (t_sts_ind_tovt)


Industry (NACE Rev. 2) (sts_ind)
Industry Turnover Index (NACE Rev. 2) (sts_ind_tovt)