{
  "url": "https://openlegislation.uk/eu-regulation-2020-1197/annex-IV/division-II/division-F/division-1",
  "json_url": "https://openlegislation.uk/eu-regulation-2020-1197/annex-IV/division-II/division-F/division-1.json",
  "legislation": "eur/2020/1197",
  "legislation_title": "Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2020-1197",
  "path": "annex/IV/division/II/division/F/division/1",
  "kind": "division",
  "number": "1)",
  "heading": "Variable 140101: Production (volume)",
  "text": "Production in short term business statistics is required as an index. The production volume index is the reference indicator for economic development and it is used in particular to identify turning points in economic development at an early stage. It should be presented in the form of a Laspeyres type index, comparing the current volume of production to the corresponding volume of production in the base period.\nTheoretical target of the production volume index:\nIn the view of business cycle statistics, own output should be measured. The terms ‘production’ or ‘output’ in the sense of business cycle statistics do not include inputs from other units.\nThe objective of the production volume index is therefore to measure changes in the volume of value added at close and regular intervals.\nThe changes in volume of value added measured should in general approximate the value added measured by the National Accounts concepts of value added.\nPrinciples for the calculation of the production volume index:\nData necessary for compilation of index as defined by theoretical target are usually not available on a monthly basis.\nTherefore, value added at basic prices is calculated only for the base period especially for updating the weights. If value added at basic prices is not available, gross value added at factor cost may be used as a proxy.\nThe monthly continuation of value added in base period is done by suitable proxy values.\nCalculation of the proxy values for continuation. Suitable proxy values for the continuation of the indices are:\ncontinuation with gross production values (deflated),\ncontinuation with volumes,\ncontinuation with turnover (deflated),\ncontinuation with work input,\ncontinuation with raw material input,\ncontinuation with energy input.\nThe correlation of these proxy measures with the development of value added may differ depending on the market activity. For each market activity a proxy with a high correlation should be chosen.\nRelations to National Accounts:\nThe common understanding of the term ‘production index’ as an ‘evolution of value added’ contradicts the definition of ‘production’ in the framework of national accounts or structural business statistics.\nIn the terms of national accounts, the production index refers to the development of ‘value added’ in constant prices, whereas value added is in principle output minus intermediate consumption at basic prices.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2020/1197/annex/IV/division/II/division/F/division/1",
    "retrieved_at": "2026-11-01T14:42:28.657754+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}