Archive:Consolidated supply, use and input-output tables
A comparison of the EU and the United States economies
- Data extracted in February 2017. Most recent data: Further Eurostat information, Main tables and Database. Planned update of the article: March 2018.
This article presents the latest available European consolidated supply, use and input-output tables for the period up to the year 2015 in terms of the [[Glossary: statistical classification of economic activities in the European Community (NACE)|NACE Rev. 2 classification.
The consolidated supply, use and input-output tables are used for macro-analysis of the European Union (EU) and euro area (EA) economies. They give an annual snapshot of overall production and use of products, distinguishing 64 NACE activities and 64 products from the CPA classification. Input-Output Tables are particularly used as a well-established tool for analytical purposes (economic analysis, social accounting matrices, and environmental accounts). The data are broken down into 10 activities and 10 product groups.
Main statistical findings
In 2015 European exports account for 13% of total EU employment with 30,9 million persons employed
The total number of persons employed by firms engaged in exporting activities (directly and indirectly) of EU has reached 30.9 million in 2015, respectively 26 million in the euro area. With nearly 31 million persons employed exports of the EU are responsible for 13% of the total employment in 2015, respectively 17% for the euro area (see Figures 1 and 2). Embodied employment in exports represent the number of persons employed by the firms that are directly engaged in exporting activities (direct effects) including also those used by upstream industries for the supply of the necessary inputs to these firms (indirect effects). The production of exported manufactured products remains the major contributor to employment in EU with directly and indirectly 18.3 million of persons, while trade, transport, accommodation and food service activities accounted for 6.2 million persons employed. The third major contributor to employment embodied in exports are the professional, scientific and technical activities; administrative and support service activities with 3,3 million persons employed. The EA required fewer persons for the production of its manufactured exports (around 15.7 million persons) and the exports of trade, transport, accommodation and food service activities (5.2 million persons). The total number of persons employed by firms engaged in exporting activities in the EU and in the EA grew by an annual average rate of 1.6% over the last ten years (from 2005 to 2015). However this development is constituted of two counteracting effects: an annual average decline of 1.7% from 2005 to 2009 followed by immediate continuation of 3.9% annual average growth from 2009 to 2015 (Figure 3). Those two counteracting effects are visible within each of the activities reviewed except for professional, scientific and technical services; administrative and support services and information and communication services where both sub-periods exhibit a positive average annual growth.
EU economy is in 2015 more oriented towards services and public administration than industry
Figure 4 shows that the EU economy is more geared to services than industry, construction or trade. All services account for 42 % of total output in the EU when industry account for 32% of total output, construction for 6% and trade for 17%. In the services financial services (including insurance and real-estate services), professional, scientific and technical services and public administration services are of equal importance in terms of total output with circa 11%. The Euro area economy situation is quite similar to the EU economy. The industry represents slightly more of the total output with 35% and all services less with 38%.
Intermediate consumption represents the most costly input in the EU economy
Intermediate consumption represents the most costly input in the EU economy (Figure 5) with 51% of total output in 2015 while labour input is the second largest cost with 25% of output. The input-output (I-O) tables show the production structures of an economy. The columns in the tables represent the cost structure of the industry and the rows the composition of its revenues. The value added is the difference between output and intermediate consumption.
The I-O tables highlight some differences across different activities in the EU: in agriculture, industry and construction activities the main input relates to intermediate consumption with respectively 52%, 58% and 57% of total output. On the opposite the real estate services are primarily founded on generation of gross value added: it represents 69% of the total output in 2015. In the administration and other public services activities labour input accounts for the larger costs with 53% of total output.
In the EU one additional unit of final demand would create 2.2 units of industrial output
Output multipliers reflect the direct and indirect requirements of domestic production per unit of final demand. One additional unit of final demand for agricultural products would generate around two units of revenue/output in the EA and in the EU (Figure 6). In the EU, the biggest output multiplier is for industrial products, where one additional unit of final demand would create 2.2 units of output (2,1 in EA). Output multipliers are slightly higher in the EU than in the EA, i.e. the EU economy would produce more than the EA economy in response to an increase of one unit of final demand.
The supply and use of chemical products in EU: 16% of the production originates from imports and 23% of the production is exported
Chemical products (CPA 20 of the products classification) are industrial products either produced by European companies or imported: out of the 678 billion euros of chemical products (respectively 577 billion euros in euro area) 16% are imported from outside EU (respectively 19% from outside EA). The European domestic production of chemicals production represents 84% of the chemicals products supply (81% of domestic EA production) from which 88% are produced by the chemical industry itself in both EU and EA, the remaining 12% being some secondary production of other industries. From the use side, chemical products are mainly used in the European Union as an intermediate consumption in the production of another product for 67% (chemical products are transformed to pharmaceutical for example) (resp. 64% in EA17) and as exports for 23% in the EU (resp. 29% in EA). Its use as a final consumption item accounts only for 9% (resp. 7% in EA). Eventually chemical products are not investment goods: their use in gross capital formation is null in the EU and EA. For each product, the sum of the different uses equals the total supply. Both supply and use are recorded in monetary terms, at the current prices of the reference year and in basic prices.
An additional 1€ spend in the chemical industry would increase the output of EU in 2015 by 2.27euros
Looking at the main ten sectors of activities, the sector of industry including chemical industry generates the biggest output multiplier on EU economy in 2015: for one additional Euro spent in the manufacturing sector, the cumulative revenues would be increased by 2.20 euros (respectively 2.12€ in EA). Chemical products production generates for on additional euro spend revenue of 2.27€. The output multiplier for an industry is expressed as the ratio of direct and indirect output changes to the direct output change due to a unit increase in final demand. If there is an increase in final demand for a particular product, we can assume that there will be an increase in the output of that product, as producers react to meet the increased demand; this is the direct effect. As the producers increase their output, there will also be an increase in demand on their suppliers and so on down the supply chain; this is the indirect effect. As a result of the direct and indirect effects the level of household income throughout the economy will increase as a result of increased employment. A proportion of this increased income will be re-spent on final goods and services: this is the induced effect. The construction sector follows closely the industry sector with an output multiplier of 2.16 (resp 2.13 for EA), while the smallest output multiplier stands for the real estate services sector with 1.46 (resp 1.41 for EA).
Data sources and availability
On the basis of the European I-O tables, a standard input-output technique was used to calculate the results of the Leontief quantity model applied to employment. First, a domestic input coefficient matrix (A) was calculated for each homogeneous branch of activity, showing direct input requirements for the production of one unit of output. Then the Leontief inverse matrix (the inverse of I — A, being I, the identity matrix) was computed to obtain the matrix of output multipliers. Next, the inverse matrix was post-multiplied by a column vector of exports to calculate the total output embodied in those exports. Finally, output coefficients of employment pre-multiplied the former results to obtain the figure for employment embodied in exports.
Embodied employment in exports is measured by hours worked of persons employed by firms directly engaged in export activities (direct effects), including those employed by upstream industries for the supply of the necessary inputs (indirect effects);
Eurostat compiles supply and use tables for the EU, the euro area and the US ( BEA) under the ESA 2010 methodology. All statistics relating to national accounts are now developed in this methodological framework, which is the European adaptation of the 2008 System of National Accounts. For the US, the make table, use table at producers values are available from the Bureau of Economic Analysis (BEA).
Context
The data are collected under the European System of National and Regional Accounts (ESA 2010) transmission programme. EU Member States transmit supply and use tables (SUTs) to Eurostat annually and input-output tables (IOTs) every five years, up to 36 months after the end of the reference period.
The SUTs give detailed information on production processes, interdependencies in production, the use of goods and services, and income generated in production. They form the basis for symmetrical IOTs, which are produced by applying certain assumptions to the relationship between outputs and inputs and are used by policy-makers for input-output analysis.
Environmentally extended (EE) IOTs, an extension in Eurostat, represent another powerful analytical instrument to inform policy.
Eurostat has compiled consolidated European tables for the EU-28 and the EA in ESA 2010 from reference year 2010 onwards.
See also
- Building the System of National Accounts - supply and use tables (chapter of online publication Building the System of National Accounts)
- National accounts and GDP
- Supply and use tables - input-output analysis (background article)
Further Eurostat information
Publications
- European exports 2000-2007: direct and indirect effects on employment and labour income in the EU 27 and euro area - Statistics in focus 36/2012
- CO2 emissions induced by EU's final use of products are estimated to be 9 tonnes per capita - Statistics in focus 22/2011
Database
- Supply, use and Input-output tables (naio_10_cp)
Dedicated section
Methodology / Metadata
- Eurostat Manual of Supply, Use and Input-Output Tables
- Methodological information on the compilation of the US supply and use tables in European classications, September 2013
- Methodological information on the consolidated European tables for years 2008 and 2009
- Technical Documentation eeSUIOT project
Source data for tables, figures and maps (MS Excel)
External links