Industrial turnover index overview
Data extracted in October 2020.
Planned article update: October 2021.
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).
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.
Industrial turnover in the EU-27 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. Between mid-2009 and 2016 turnover values in total industry more or less stagnated; the non-domestic market showed some decline which was compensated by a small increase in domestic markets. Only in recent years industrial turnover increased again on all market and surpassed level before the financial crisis. In February 2020 the Covid-19 crisis set in and industrial turnover fell by more than 35 index points in just two months. The following months from May to July saw a rapid recovery nevertheless the turnover in industry is still only at a level which it had already reached in 2016.
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, Slovakia, and the Baltic countries. In 2009 industrial turnover dropped in all EU Member States. In the following years rates of change were generally rather low or even negative, only in 2017 and 2018 almost all Member States regained positive growth levels which generally continued in 2019 albeit at a lower level. Moreover, some countries (Germany, Estonia, Greece, Croatia, Italy, Luxembourg, and Austria experienced even negative rates of change of industrial turnover.
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.
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 - 2020.
- 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)
- Focus on the link between new orders, turnover and production for industrial activities - Statistics in focus 58/2007