SWITCH TO THE NEW CLASSIFICATION OF ECONOMIC ACTIVITIES (NACE REV2)

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1 SWITCH TO THE NEW CLASSIFICATION OF ECONOMIC ACTIVITIES ( REV) 1 Introduction of new classification of activities (nace rev) 1.1. General Classifications of activities and products are revised periodically. That is necessary because the economic structure of countries changes, and so does the composition of certain aggregates in the national accounts (broken down by industry and/or product). From now on, 008 replaces the nomenclature 00. The revised nomenclature of activities rev 1 ( 008) provides for less detail than before in manufacturing industry, but more detail in the construction and services sectors. Number of branches in 00 Section Description A_B Agriculture, forestry and fishing 7 16 C_E Mining and quarrying, industry, electricity, gas and water F Construction G_P Services Total Number of branches in 008 Section Description A_B Agriculture, forestry and fishing 1 9 C_E Mining and quarrying, industry, electricity, gas and water, sewerage, waste management and remediation activities F Construction 9 1 G_T Services Total The aggregation levels applicable in the national accounts published up to 010 ( 00) and those published from 011 ( 008) are as follows domain A6 A10 quarterly accounts A17 A1 not used in the national accounts (sections of ) A1 A8 detailed accounts : estimates last year (t-1) A60 A6 detailed accounts : estimates t- and earlier SUT branch (# 1) SUT branch (# 1) compilation level per industry The content of the various aggregation levels in terms of 008 is set out in the annex. 1 The most detailed branch breakdown used here is the -digit classification. However, for Belgium it is the -bel 008, produced by DGSEI, which is compatible with the -digit classification but offers additional detail (-digit specification of branches). -bel 008 is the Belgian transposition of Regulation (EC) No 189/006 of the European Parliament and of the Council of 0 December 006 establishing the statistical classification of economic activities rev.. 1

2 1.. Switch to nace Automatic conversion of nace 00 from the 008 business register The estimates for 009 use the 008 classification. For that purpose, all units (corporations, selfemployed persons, NPIs, etc.) included in the 009 business register of the national accounts had to have a -digit code in accordance with the new classification. For existing enterprises (present in the 008 business register) the 008 code was allocated on the basis of 00. The following links between the old and new are possible: if, on transition from 00 to 008, there is a "1 1"- or a "N 1" relationship for the codes, the conversion takes place automatically on the basis of the old code; if, on transition from 00 to 008, there is a "1 N" relationship for the codes, the method is as follows: the 008 code for the enterprise in question is extracted from the KBO [companies register DGSEI]; if the code in the KBO is among the 008 codes belonging to "N", the code is applied; if the code in the KBO is not among the 008 codes belonging to "N", the preferential code is chosen. This is the most generic code in "N". Below is an example of the "1 N" relationship, by way of illustration: 00 Description 008 Description 7.00 Other on-line publishing activities Publishing of books 7.00 On-line publishing of guides and mailing lists 8.10 Publishing of directories and mailing lists 7.00 Other on-line publishing activities 8.10 Publishing of newspapers 7.00 Other on-line publishing activities 8.10 Publishing of journals and periodicals 7.00 On-line publishing of databanks Other publishing 7.00 Other on-line publishing activities Other publishing 7.00 Other on-line publishing activities 8.10 Publishing of computer games 7.00 Other on-line publishing activities 8.90 Other software publishing 7.00 On-line publishing for downloading music 9.0 Publishing of music recordings 7.00 Broadcasting of radio programmes via the internet Broadcasting of ratio programmes 7.00 Broadcasting of television programmes via the internet Television programming and broadcasting 7.00 Designing the structure and content of databanks Computer programming activities 7.00* Activities relating to databanks 6.110* Data processing, hosting and related activities 7.00 Internet home pages 6.10 Web portals (*) is the preferential 008 code corresponding to 00 code 7.00 The 00 code 7.00 (activities relating to databanks) is broken down into 1 different branches at the -digit level in the new. These come under different 008 divisions (8, 9, 60, 6, 6). If the 008 code in the KBO of undertakings currently classified under 00 code 7 in the 008 code list concerns one of the 1 branches [8110, 810, 810, 810, 8190, 810, 890, 90, 60100, 6000, 6010, 6110, 610 the code according to the KBO is chosen. If the code in the KBO is not on that list, the preferential code (6110) is allocated. For new undertakings (present in the 009 business register but lacking in the 008 business register) 008 code in the KBO is extracted. DGSEI has produced a correspondence table for the 00 and 008 nomenclatures.

3 1.. Correction of incorrect nace codes in the 009 business register The introduction of 008 was an opportunity to improve the quality of the codes in the business register where necessary. Before the automatic conversion, the codes of undertakings in the 008 code list were tested for possible inconsistencies by comparison with external sub-populations (agriculture census, list of enterprises reporting for the survey of industrial production (prodcom). The modified used by the NSSO from 010 on for service voucher undertakings was also taken into account. The code of atypical enterprises in the SUT was corrected and the population of enterprises with old code 7879 (other business-related services) was examined. This made it possible to correct the code of several thousand enterprises (at -digit level). This changed the relative importance of the branches in the economy. Table 1 Reallocation of value added among the branches as a result of corrections to the codes (008, million) S11 S1 S1 Total Agriculture, forestry, fishing (A) -8-8 Mining and quarrying (B) Manufacturing (C) Electricity, gas, steam and air conditioning supply (D) 1 1 Water supply, sewerage, waste management and remediation activities (E) Construction (F) Wholesale and retail trade; repair of motor vehicles and motor cycles (G) Transportation and storage (H) -0-0 Accommodation and food service activities (I) 0 0 Information and communication (J) -8-8 Financial and insurance activities (K) Real estate activities (L) -6-6 Professional, scientific and technical activities (M) - - Administrative and support service activities (N) - - Education (P) -6-1 Human health and social work activities (Q) Arts, entertainment and recreation (R) 7 7 Other service activities (S) Total S11: non-financial corporations S1: financial auxiliaries S1: non-profit institutions serving households In a number of cases, correction of the codes led to a revision of the sector codes: thus, in million of value added switched from S1 to S11 (non-financial corporations incorrectly included under 00 code 67 "financial sector") and 6 million of value added switched from S1 to S11 (international schools which are henceforward regarded as market producers). The biggest shifts are between manufacturing and construction, which gain in importance, and businessrelated services, wholesale and retail trade and financial activities which become less important. These are undertakings whose main activity concerns a different branch from the one to which they are allocated in the supply and use table, indicating an inccrrect classification in the business register. If the KBO has a more specific code for these undertakings, it is selected. Since value added in agriculture is estimated exogenously, the corrections do not affect it. However, the net elimination of undertakings from agriculture (transferred, for example, to the food processing industry and trade in agricultural products) does result in an increase in total value added (amounting to 8 million).

4 1.. Preparation of series in nace 008 from 199 For economic analysis, it is of course important to have longer series available in 008. For that purpose, series are back casted to 199. This is a -stage process: conversion of series according to 00 to series in 008 in A6. For variables available per enterprise (labour market statistics and gross fixed capital formation), the conversion was carried out per enterprise; the individual variables were then aggregated to the A6 branch. For variables only available per branch (value added), a conversion was carried out from the old SUT branch to the new A6 branch. retropolation of the corrections/adjustments to institutional sectors in the 009 business register; this meant that the correction (and in some cases the change of institutional sector code) carried out in the 009 business register was continued into the past, so that in principle there is no break between 009 and earlier years. Annex Aggregation levels in nace rev A10 Agriculture, forestry and fishing (A) Mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply; water supply; sewerage, waste management and remediation activities (B, C, D, E) Construction (F) Wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities (G, H, I) Information and communication (J) Financial and insurance activities (K) Real estate activities (L) Professional, scientific and technical activities; administrative and support service activities (M, N) Public administration and defence; compulsory social security; education; human health and social work activities (O, P, Q) Arts, entertainment, repair of household goods and other services (R, S, T, U) A1 A B C D E Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity, gas, steam and air conditioning supply Water supply; sewerage, waste management and remediation activities F G H I J K L Construction Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and storage Accommodation and food service activities Information and communication Financial and insurance activities Real estate activities

5 M N O P Q R S T U Professional, scientific and technical activities Administrative and support service activities Public administration and defence; compulsory social security Education Human health and social work activities Arts, entertainment and recreation Other service activities Activities of households as employers; undifferentiated goods -and servicesproducing activities of households for own use Activities of extraterritorial organizations and bodies A8 AA BB CA CB CC CD CE CF Agriculture, forestry and fishing Mining and quarrying Manufacture of food products, beverages and tobacco products Manufacture of textiles, wearing apparel and leather products Manufacture of wood and paper products, and printing Manufacture of coke and refined petroleum products Manufacture of chemicals and chemical products Manufacture of basic pharmaceutical products and pharmaceutical preparations CG CH CI CJ CK CL CM DD EE Manufacture of rubber and plastics products, and other non-metallic mineral products Manufacture of basic metals and fabricated metal products, except machinery and equipment Manufacture of computer, electronic and optical products Manufacture of electrical equipment Manufacture of machinery and equipment n.e.c. Manufacture of transport equipment Manufacture of furniture; other manufacturing; repair and installation of machinery and equipment Electricity, gas, steam and air-conditioning supply Water supply; sewerage, waste management and remediation activities FF GG HH II JA JB JC KK LL MA Construction Wholesale and retail trade, repair of motor vehicles and motorcycles Transportation and storage Accommodation and food service activities Publishing, audiovisual and broadcasting activities Telecommunications Computer programming, consultancy and related activities; information service activities Financial and insurance activities Real estate activities Legal and accounting activities; activities of head offices; management consultancy activities; architecture and engineering activities; technical testing and analysis MB Scientific research and development

6 MC NN OO PP QA QB RR SS TT Advertising and market research; other professional, scientific and technical activities; veterinary activities Administrative and support service activities Public administration and defence; compulsory social security Education Human health activities Social work activities Arts, entertainment and recreation Other service activities Activities of households as employers of domestic personnel and undifferentiated goods and services production of households for own use UU Activities of extra-territorial organizations and bodies A6 (nace ) 01 Crop and animal production, hunting and related service activities 0 Forestry and logging 0 Fishing and aquaculture 0-09 Mining and quarrying 10-1 Manufacture of food products, beverages and tobacco products 1-1 Manufacture of textiles, wearing apparel and leather products 16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials 17 Manufacture of paper and paper products 18 Printing and reproduction of recorded media 19 Manufacture of coke and refined petroleum products 0 Manufacture of chemicals and chemical products 1 Manufacture of basic pharmaceutical products and pharmaceutical preparations Manufacture of rubber and plastics products Manufacture of other non-metallic mineral products Manufacture of basic metals Manufacture of fabricated metal products, except machinery and equipment 6 Manufacture of computer, electronic and optical products 7 Manufacture of electrical equipment 8 Manufacture of machinery and equipment n.e.c. 9 Manufacture of motor vehicles, trailers and semi-trailers 0 Manufacture of other transport equipment 1- Manufacture of furniture; other manufacturing Repair and installation of machinery and equipment Electricity, gas, steam and air conditioning supply 6 Water collection, treatment and supply 7-9 Sewerage; waste collection, treatment and disposal activities; materials recovery; remediation activities and other waste management services 1- Construction Wholesale and retail trade and repair of motor vehicles and motorcycles 6 Wholesale trade, except of motor vehicles and motorcycles 7 Retail trade, except of motor vehicles and motorcycles 6

7 9 Land transport and transport via pipelines 0 Water transport 1 Air transport Warehousing and support activities for transportation Postal and courier activities -6 Accommodation; food and beverage service activities 8 Publishing activities 9-60 Motion picture, video and television programme production, sound recording and music publishing activities; programming and broadcasting activities 61 Telecommunications 6-6 Computer programming, consultancy and related activities; information service activities 6 Financial service activities, except insurance and pension funding 6 Insurance, reinsurance and pension funding, except compulsory social security 66 Activities auxiliary to financial services and insurance activities 68 Real estate activities Legal and accounting activities; activities of head offices; management consultancy activities 71 Architecture and engineering activities; technical testing and analysis 7 Scientific research and development 7 Advertising and market research 7-7 Other professional, scientific and technical activities; veterinary activities 77 Rental and leasing activities 78 Employment activities 79 Travel agency, tour operator reservation service and related activities 80-8 Security and investigation activities; services to buildings and landscape activities; office administrative, office support and other business support 8 Public administration and defence; compulsory social security 8 Education 86 Human health activities Social work activities 90-9 Creative, arts and entertainment activities; libraries archives, museums and other cultural activities; gambling and betting activities 9 Sports activities and amusement and recreation activities 9 Activities of membership organisations 9 Repair of computers and personal and household goods 96 Other personal service activities Activities of households as employers of domestic personnel and undifferentiated goods and services production of households for own use 99 Activities of extraterritorial organizations and bodies 7

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