Archive:Consolidated supply, use and input-output tables

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This article presents the latest available European consolidated supply, use and input-output tables for the years 2010, 2011 and 2012 in terms of the NACE Rev. 2, together with some practical and methodological background information. The European consolidated supply, use and input-output tables are for the first time disseminated under the new ESA 2010 methodology. The consolidated supply, use and input-output tables are used for macro-analysis of the European Union (EU) and euro area economies. The tables give an annual snapshot of overall production and the use of the products, distinguishing 64 NACE activities and 64 products from the CPA. The US data have been compiled by Eurostat using the same European classifications. The data are broken down into 10 activities and 10 product groups.

Figure 1: Sectoral structure of output for the year 2012 in the EU, the US and the euro area - Source: Eurostat (naio_agg_10_r2)

Figure 2: Sectoral structure of output for the year 2009 in the EU, the US: selection of the main product groups - Source: Eurostat (naio_agg)

Figure 3: Input coefficients for the European Union, 2009, by product groups - Source: Eurostat (naio_agg)

Figure 4: Input coefficients for the US, 2009, by product groups - Source: Eurostat (naio_agg)

Figure 5: Composition of the EU revenues, 2009, by product groups - Source: Eurostat (naio_agg)

Figure 6: Composition of the US revenues, 2009, by product groups - Source: Eurostat (naio_agg)

Figure 7: Output multipliers for the EU and the US, 2009, by product groups - Source: Eurostat (naio_agg_ldom)

Figure 8: Embodied employment in exports (thousands of jobs) during the period 2000-2009 for the European Union and the euro area - Source: Eurostat (naio_agg) and own calculations

Figure 9: Growth rate of embodied employment in exports (thousands of jobs) between 2008 and 2009 for the European Union and the euro area - Source: Eurostat (naio_agg) and own calculations

Table 1: Embodied employment in exports (thousands of jobs) between 2000 and 2009 for the European Union and the euro area - Source: Eurostat (naio_agg) and own calculations

Figure 10: Embodied employment and labour income in exports in EU-27 - Source: Eurostat (naio_agg) and own calculations

Figure 11: Embodied employment and labour income in exports in EA - Source: Eurostat (naio_agg) and own calculations

Figure 12: Annual average growth of the embodied labour income in exports over the period 2000 to 2009 - Source: Eurostat (naio_agg) and own calculations

Main statistical findings

In 2012, the European Union is more oriented towards industry, construction and trade compared to the US economy. The industrial products and trade services represent respectively 29% and 18% of the total output of the EU (see Fig1). In the US, industrial products represent 24% of the total output in 2012, trade services and administration services following with 17%. The euro area has the same dominant groups as the EU with the industrial products and trade services counting for 30% and 18% respectively of the total output in 2012. Construction works is a significant industrial output in Europe and US with respectively 7% and 4% of total output in 2012. In all cases agricultural products represent a very low proportion of total output (2% in 2012).

US economy is more oriented towards services and public administration in comparison to EU

The Figure 1 shows the orientation of the US economy is more towards services that industry, construction and trade compared to EU. All services account for 33% of total output in US while it attains 29% for EU (similarly 28% for EA). The financial services (including insurance and real estate services) represent 16% of the total output in US, a stronger proportion than the one in EU (12%). In 2012 18% of US output came from public administration services (including defence, education, human health and social work services), while the EU figure was 13%.

Different cost structures in EU and in US

Intermediate consumption represents the most costly inputs in the EU economy, while labour input dominates in the US economy. The input-output (I-O) tables show the production structures of the EU and US economies. The columns in the tables represent the cost structure of the industry and the rows the composition of its revenues. The value added is defined as the difference between output and intermediate consumption. The I-O tables for 2012 highlight some differences between the two economies (see Figures 2 and 3): except for agricultural products and public administration services, input from value added is more important for the United States than for the EU. As regards industrial products, the part of value added makes up 30 % of the total for the EU, as against 39 % for the United States. In trade services and accommodation services, value added accounts for 49 % of total output in the EU but 60 % in the United States. For agricultural products, the proportion represented by value added is comparable in the two economies: 45 % in the EU and 43% in the US. For public administration services, share of value added in output is smaller in the United States than in the EU (64 % as against 70 %).

Labour input (in terms of compensation of employees) largely balances out the lower cost of intermediate consumption for the United States: construction works, trade services, information and communication services and professional and support services require more expenses on salaries (labour input is measured in terms of compensation of employees) than in the EU. Labour input accounts for 36 % of total construction costs in the United States, as compared with 22 % in the EU, and 33 % in trade services as against 28 % in the EU. In information and communication services, the figure is 31 % for the United States and 27 % for the EU. In real estate services, the components of the value-added excluding compensation of employees are equivalent to 71 % of total output in the United States and somewhat similar in the EU.

Intermediate consumption

In terms of composition of its revenues, the EU uses its products in a greater proportion for intermediate consumption than the US. In Figures 4 and 5, the first left bar shows the share of intermediate consumption in the total uses. Whatever products group is considered except agricultural products and real estate services, the share of intermediate consumption in total uses is always higher in the EU than in the US. The highest share related to professional and support services for both economies around 75 %. The share of final consumption is quite comparable between the EU and the US, except for agricultural products and trade, transportation, accommodation and food services. The agricultural products are dedicated for 25% to final consumption in the EU and only for 4% to exports while in the US agricultural products go for 14% to final consumption and 11% to exports. The other product group with a different behaviour is the trade, transportation, accommodation and food services. In EU 46% of the output goes to final consumption while in the US this share raises to 56%.

Impact of final demand on EU and US economies

One additional unit of final demand of industrial products would generate 2.3 of revenue/output in the EU and 1.9 in the US. Output multipliers reflect direct and indirect requirements of domestic production per one unit of final demand. One additional unit of final demand for agricultural products would generate around two of revenue/output in the United States (same value for the EU) (Figure 6). In the EU, the biggest output multiplier is for industrial products, where one additional unit of final demand would create output of 2.3 (1.9 in the United States in 2012). Output multipliers are generally higher in the EU than in the United States: the European economy would produce more than the US economy for an increase of one unit of final demand. There is one exception for public administration, defence, education and health services where the output multiplier for the US (1.6) is slightly larger than the European one (1.5).

Embodied employment in exports in EU, Euro area and US

In 2012, the total number of persons employed by firms engaged in export activities (directly and indirectly) went down by 10 % in the EU, increased by 11.6% in the euro area as compared with the year 2010.. In the US the embodied employment in exports increased by 15% between 2010 and 2012. Embodied employment in exports represents in EU 11% of the total employment; in the euro area it raises to 18% of total employment while in US embodied employment in exports corresponds to 6% of total employment.

In 2012, the production of manufactured products for export accounted for an average of 65 % of embodied employment in EU and 61 % in EA exports. It corresponds to 40% in the US. Services in the trade, transport, accommodation and food, and information and communication sectors accounted for 18% of the total number of persons employed by firms engaged in exporting activities in the EU and 20% in the EA. In the US the share raises to 26%.

Data sources and availability

According to a standard input-output technique, the European input-output tables were used to calculate the results of the Leontief quantity model applied to employment. First, a domestic input coefficient matrix (A) was calculated for each homogenous branch of activity, showing the 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 Leontief 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 employment embodied in exports.

1. Embodied employment in exports: number 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);

For the first time, Eurostat has compiled supply and use tables for the European Union, the Euro Area and the United States using the new ESA 2010 methodology. All statistics related to National Accounts are now developed under this new methodological framework which is the European adaptation of the System of National Accounts 2008.

Context

The data are collected from 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 input-output tables, 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 input-output tables (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 the reference year 2010.

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

• ESA 95 Supply, Use and Input-output tables , see:

Supply, use and Input-output tables (naio)

Supply, use and Input-output tables - EU aggregates (naio_agg)

Dedicated section

• ESA 95 Supply, Use and Input-output tables

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

External links

• International Input-Output Association (IIAO) - IIAO newsletters