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| Information about the Economic Survey of Manufacturing |
Availability
| Valid From: .. | 04/01/2001 |
| To: .. | Ongoing |
| Frequency: .. | Quarterly |
Design
Purpose:
1. To provide an economic indicator of how the Manufacturing sector is performing.
2. To provide the data necessary for the compilation of the Manufacturing
industry's contribution to the quarterly national accounts.
General Information ..Target Population
All enterprises that operate in New Zealand classified to ANZSIC Division C (Manufacturing).
Population covered
All economically significant kind-of-activity units (KAU's) on the SNZ Business Frame that have an ancillary classification of ANZSIC Division C (Manufacturing).
Manufacturing is the transformation (mechanical or chemical) of substances into new products, whether by machinery or by hand, in a factory or a home. The assembly of component parts of manufactured products is considered as manufacturing except where the appropriate classification is Construction.
Statistical Unit
Kind-of-activity unit (KAU)
Statistical Units and the Business Frame
The statistical units on the BF are Enterprises, kind of activity units (KAUs) and geographic units (GEOs).
Selection Unit
Enterprise
Enterprises on the BF considered for selection are those that have one or more manufacturing KAUs. Enterprises with more than one KAU (and thus including those with more than one manufacturing KAU) are all automatically selected.
Collection Unit
Kind-of-activity unit
Under Coverage
There are 3 main types of undercoverage
1. Manufacturing activity at a level beneath the selection unit - KAUs on the BF are derived units composed of one or more geographic units. A geographic unit is a separate operating unit engaged in New Zealand in one, or predominately one, kind of economic activity from a single physical location or base. Some KAUs will have geographic units which are classified to manufacturing on the BF but because this is not the predominant activity of the KAU the KAU will have a different classification, for example, Wholesaling. These KAUs are not eligible to be included in the Economic Survey of Manufacturing. Note that manufacturing KAUs that contain non-manufacturing GEOs have all their activity included in QMS. So this is not one way undercoverage ie there is some over-coverage too.
2. Activity from units which are excluded from selection ie not economically significant.
3. Activity from units who are not on the business frame (eg those not GST registered with IRD), and very new registrations that have not been processed.
Population and Sample Size
Postal sample approximately 1,600 kind-of-activity units.
Administrative (tax) stratum approximately 18,000 kind-of-activity units.
Population approximately 22,500 kind-of-activity units.
Seasonal Adjustment
The seasonally adjusted series removes the effect of regular climatic or calendar events. This allows direct comparison between figures from different periods. The X12-ARIMA package is used to produce seasonally adjusted and estimates. All seasonally adjusted figures are subject to revision each quarter.
Trend Estimates
A trend estimate is one in which both the seasonal and irregular components have been removed. Once confirmed, trend estimates reveal the underlying direction of movements in a series. Trend estimates indicate turning points more accurately than seasonally adjusted estimates. The manufacturing sales trend series is also calculated using the X12-ARIMA seasonal adjustment package. It is based on optimal weighted moving averages of the seasonally adjusted series with an adjustment for outlying values. Trend estimates towards the end of the series incorporate new data as it becomes available and can therefore change as more observations are added to the series. Revisions can be particularly large if an observation is treated as an outlier in one period, but is found to be part of the underlying trend as further observations are added to the series. All trend estimates are subject to revision each month but normally only the last two or three estimates are likely to be substantially altered.
Constant Dollar Deflation
Actual sales and purchases data are deflated by appropriate price indexes to remove the impact of price change on the figures. These constant dollar series are then seasonally adjusted. The data then shows quantity movements, allowing inter-period comparisons. The deflated series measure sales and purchases in December 1997 dollars.
Sales and purchases are deflated using sub-indexes from the Producers Price Index. These sub-indexes measure price movements in each of the 15 published manufacturing industries as well as total manufacturing. When the current price series are divided by the value of the respective sub-indexes, price effects are removed, and a volume measure remains. Each of the indexes used for deflation purposes are available on INFOS.
BS/MF/01 
Output Variables
Output variables are pieces of individual information that can be extracted from the survey/output data. Often output variables can be cross tabulated with other output variables, for example sales by industry classification. The list below contains all current and past output variables which have been released for this survey/output.
Note: All variables are produced for ANZSIC publication industries.
| Variable Name | Description |
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| Sales of goods and services and other operating income | Linecode 14 from pre June 1998 questionnaire, and linecode 5 from the June 1998 to June 2001 questionnaire. Is now linecode 01 in the new questionnaire. Includes sales of processed goods, sales of goods purchased for resale, sales of services and general operating income e.g. management fees, royalties, patent fees, lease income. Excludes interest and dividends received, donations, insurance claims received, bad debts, government grants and subsidies, gains on sale of fixed assets, exchange gains, sales tax, beer and excise duty. |
| Purchases of goods and services and other operating expenditure | Linecode 20 from pre June 1998 questionnaire, and linecode 11 from the June 1998 to June 2001 questionnaire. Is now linecode 02 in the new questionnaire. Includes purchases of goods for resale, purchases of goods and materials, motor vehicle expenses, electricity and fuels, charges and fees paid to other businesses/divisions, management fees, telecommunication expenses, royalties and patent fees, and general operating expenditure e.g. freight, rent, hiring. Excludes depreciation, interest paid, bad debts,donations, road user charges, fringe benefit tax and indirect taxes, losses on sales of fixed assets, exchange losses, sales tax, beer and excise duty paid. |
| Gross salaries and wages paid to employees | Linecode 3 from pre June 1998 questionnaire, and linecode 12 from the June 1998 to June 2001 questionnaire. Is now linecode 03 in the new questionnaire. Includes redundancy payments to employees. |
| Closing stock of raw materials | Linecode 10 from pre June 1998 questionnaire and linecode 3 from the June 1998 to June 2001 questionnaire. Is now linecode 04 in the new questionnaire. Includes materials, fuels, livestock etc. |
| Closing stock of finished goods | Linecode 11 from pre June 1998 questionnaire and linecode 4 from the June 1998 to June 2001 questionnaire. Is now linecode 05 in the new questionnaire. Includes finished goods, work in progress and trading stocks. |
| Additions to fixed assets | Derived as linecode 5 + linecode 7 from pre June 1998 questionnaire, and linecode 2 from the June 1998 to June 2001 questionnaire. Is now linecode 06 in the new questionnaire. Includes purchases of fixed assets (land and other fixed assets) and capital work done by own employees. |
| Disposals of fixed assets | Derived as linecode 6 + linecode 8 from pre June 1998 questionnaire. Discontinued from June 1998. Is now linecode 07 in he new questionnaire. Includes gross process and receipts from the sale of fixed assets (land and other fixed assets) |
Changes in Output Variables over time
Guide to Interpreting Data
Summary of Changes to Survey/Output ..1958 - 1977
From 1958 to 1977 Statistics New Zealand conducted a quarterly survey of manufactured stocks. It was compiled on a sample basis and covered approximately 10 percent of all factories included in the annual Census of Industrial Production (now Manufacturing).
1977 - 1982
The subsequent survey commenced in June 1977. As an economic survey of manufacturing statistics, it was a more sophisticated base for economic projections than that available before 1977. The system was automated in 1981.
1982 - 1991
The survey was revised in 1982. A statistically representative sample of manufacturing units selected from the 1979 Census of Manufacturing replaced one third of the existing sample. The benchmarks used to rate-up sample totals were recalculated based on the 1979 Census.
1991 - 1998
The survey was revised again in 1991. The Department introduced a revised sample of businesses and made other technical changes to the Quarterly Economic Survey of Manufacturing from the March quarter 1991. The changes made resulted in improved statistics on manufacturing in New Zealand.
In order to provide a consistent longer term historical series, a compatible revised series going back over previous years was calculated. In contrast to the previous survey sample, which was based on the 1979 Census of Manufacturing, the revised sample was selected from the Statistics New Zealand Business Frame, a comprehensive and up to date list of all businesses in New Zealand. The use of this directory as the sample frame ensured a comprehensive coverage of the manufacturing sector and allowed for the timely inclusion of new manufacturing businesses.
The previous survey sample design, which was introduced in 1982 was improved to better reflect the manufacturing sector in 1991. The survey population of manufacturers was also extended to cover manufacturing businesses with less than 2 full-time equivalent persons engaged. These small businesses were excluded from the previous survey. The revised series of statistics for quarters prior to the introduction of the new survey included estimates for this extension to the population coverage, in order to ensure continuity of the series.
From March 1996 data onwards, the Economic Survey of Manufacturing was published according to the Australian New Zealand Standard Industrial Classification (ANZSIC). NZSIC data continued to be available until the survey was redesigned according to ANZSIC. Because of differences between the ANZSIC and NZSIC populations there was some under coverage in the published ANZSIC series.
1998 - 2001
From the June 1998 quarter, the overall number of variables collected from the Economic Survey of Manufacturing was reduced. Some variables were added to the survey for the Quarterly Profit Survey project. These were :
- Interest received
- Dividends received
- Interest paid
Variables which were no longer collected from the June 1998 quarter were:
- Hours worked by working proprietors (this variable was still collected in the short-form questionnaire)
- Disposals of fixed assets (land) and disposals of fixed assets (other)
- Sales tax and excise duty was no longer collected. Firms were asked to explicitly exclude this from the questionnaire
- Government grants and subsidies received
- Interest, dividends, royalties etc. received
- Depreciation
- Interest, dividends, royalties etc. paid
The two main changes which affected the data published from June 1998 quarter were:
- Disposals of fixed assets (series MANQ.S1K7) was discontinued
- Purchases and other operating expenditure (series MANQ.S1[A-K]6) was discontinued. This series was replaced by a new variable, Purchases of goods and services (series MANQ.S1[A-K]9)). The new variable was the same as the old variable except that it excluded depreciation expenses.
The sample was not reselected at this time.
Some formatting changes were made to the questionnaire in the September 1998 quarter.
2001 -
The previous QMS series was based on a statistical sample that was first surveyed in the December 1992 quarter. The last quarter of the old QMS was June 2001. The QMS was a panel survey. Businesses had one chance of selection at their birth and those that were introduced then remained in the sample until either they ceased operation in the manufacturing industry, or the panel was reselected.
Over time, sample designs become less effective in representing the current population as a whole. While the original samples are maintained to include a representative selection of new businesses, periodically panel samples need to be refreshed to reflect changes in the composition of the population.
The QMS has been redesigned to provide better and more up-to-date coverage of the Manufacturing population. The new QMS design will allow changes in the composition of the population over time to be better represented in the survey.
Changes to the QMS include:
- a redesign of the survey questionnaire;
- the inclusion of royalty and patent fees within the definition of operating income and expenditure;
- the introduction of an ANZSIC definition of Manufacturing as the basis for the sample design;
- the use of administrative (tax) data for small to medium-sized businesses in place of direct surveying;
- the adoption of periodic re-selection of the survey sample population.
- the use of bi-variate stratification in the sample design;
- improvements in non-response imputation methodologies.
These changes have been made to ensure that the future estimates produced from the QMS accurately reflect activity in the manufacturing sector of the New Zealand economy.
During the June 2001 quarter, the QMS was calculated on both the old and new basis. The primary purpose of this "dual run" was to enable the comparison of the surveys run under the previous and redesigned methods, so that the two series could be linked at a single point in time. This facilitated the production of an analytical back series for the redefined output industries. Another important function of the dual run was to measure level shifts in the results coming from the two different designs so that the results can be verified and explained.
The content of the questionnaire was reviewed with a focus on meeting the core data requirements of users, while being mindful of the burden that such collection places on respondents. The number of variables collected on the questionnaire has, as a consequence, been significantly reduced. The following items have been removed from the questionnaire from the June 2001 quarter:
- Hours worked by paid employees
- Interest receieved
- Dividends receieved
- All other income
- Salaries and wages to working proprietors
- Interest paid
- All other expenditure
During consultation with users, it was determined that the existing Additions to Fixed Assets question was of limited use without a corresponding Disposals question also being asked. Users (both internal and external) identified Net Additions to Fixed Assets as being the information which was of most use to them. As a consequence, the following question has been added to the questionnaire from the June 2001 quarter:
- Disposals of fixed assets
The main industry affected by the population adjustments resulting from the change to an ANZSIC design was the Printing, Publishing and Recorded Media industry, which saw the level of sales recorded rise by $195 million for the June 2001 quarter as a result. Activities which have been brought into the scope of this industry under the ANZSIC design include:
- Book and Other Publishing
- Newspaper Printing or Publishing
- Other Periodical Publishing
- Paper Stationery Manufacturing
The only other industry affected by the population expansion was Machinery and Equipment Manufacturing, which rose by $28 million. Activities which have been brought into the scope of this industry under the ANZSIC design include:
- Lifting and Material Handling Equipment Manufacturing
- Medical and Surgical Equipment Manufacturing
Usage and Limitations of the Data ..The main use of the data is in the compilation of quarterly National Accounts.
Related Data Sources ..Annual Enterprise Survey
Sampling Errors ..The 2001 redesign was aimed at achieving relative sampling errors of:
i) 5% for value added, sales and salaries and wages at the total manufacturing level.
ii) 10% for value added, sales and salaries and wages at the published industry level.
where value added is calculated as follows:
- Value Added = Sales - Purchases + Stock change
Non-sampling errors Non-sampling errors in the survey data may result from errors in the sample frame, respondent error, mistakes made during processing survey results and non-response imputation. The department adopts procedures to detect and minimise these types of errors but they may still occur and they are not quantifiable.
Data for the Economic Survey of Manufacturing is subject to revision if significant errors are detected in subsequent quarters.
Caveats on Release ..The following caveat is used on the customised tables above :
"These figures are not official statistics and should not be attributed to Statistics New Zealand.
The Sub-Industry Group figures contained in this table are subject to significant levels of sample error.
They should be used with this in mind. Data is subject to the terms and conditions of supply."
The following tables are produced on a quarterly basis.
Catalogue & Reference Numbers
| INFOS: | ANZSIC Series
MANQ.SNM[C01-CZZ][A-G] - Selected variables by ANZSIC industry group
MANQ.SNM[C01-CZZ][A,B][S,T] - Sales and purchases - seasonally adjusted and trend series by ANZSIC industry group
MANQ.SNMR[C01-CZZ][A,B] - Deflated sales and purchases deflators by ANZSIC industry group at December 1997 prices
MANQ.SNMR[C01-CZZ][A,B][S,T] - Sales and purchases - seasonally adjusted and trend series by ANZSIC at December 1997 prices
where:
CZ1 = Meat and dairy product manufacturing (ANZSIC groups C211 and C212)
C03 = Other food manufacturing (ANZSIC groups C213 - C217)
CZ2 = Beverage, malt and tobacco manufacturing (ANZSIC groups C218 - C219)
C06 = Textile and apparel manufacturing (ANZSIC subdivision C22)
C07 = Wood product manufacturing (ANZSIC groups C231 - C232)
C08 = Paper and paper product manufacturing (ANZSIC group C233)
C09 = Printing, publishing, and recorded media (ANZSIC subdivision C24)
C10 = Petroleum and industrial chemical manufacturing (ANZSIC groups C251 - C252)
C11 = Rubber, plastic and other chemical product manufacturing (ANZSIC groups C254 - C256)
C12 = Non-metallic product manufacturing (ANZSIC subdivision C26)
C13 = Basic metal manufacturing (ANZSIC groups C271 - C273)
C14 = Structural, sheet and fabricated metal product manufacturing (ANZSIC groups C274 - C276)
C15 = Transport equipment manufacturing (ANZSIC groups C281 - C282)
C16 = Machinery and equipment manufacturing (ANZSIC groups C283 - C285)
C17 = Furniture and other manufacturing (ANZSIC subdivision C29)
CZ3 = Total manufacturing (excluding meat and dairy product manufacturing) (All C ANZSIC groups except C211 and C212)
CZZ = Total manufacturing (ANZSIC division C)
A = Operating income
B = Purchases and operating expenditure
C = Salaries and wages
D = Stocks of raw materials for use in production
E = Finished goods, work in progress and trading stocks
F = Additions to fixed assets
G = Disposals of fixed assets |
Other Comments
Classification(s) used
Classifications |
Classification Versions |
Classification Type |
ANZSIC96 - Australian and New Zealand Standard Industrial Classification - NZ Version 1996 |
V4.1 |
NZ Standard |
Glossary of Terms
Contact Details
Liability
Statistics New Zealand gives no warranty that the information or data supplied contains no errors. However, all care and diligence has been used in processing, analysing and extracting the information. Statistics New Zealand shall not be liable for any loss or damage suffered by the customer consequent upon the use directly, or indirectly, of the information supplied in this product.
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