Dáil Éireann Debate, Monday - 11 September 2023
10. Deputy Ged Nash asked the Taoiseach to confirm if the CSO is considering switching to a different way of measuring Ireland's economic performance and industrial output (details supplied); if so, what techniques will be used; when any change will be introduced; and if a request for such a change has been made by Eurostat. [38360/23]
View answerThe article supplied by the Deputy refers to the CSO’s Industrial Production and Turnover (IPT) release.
This release is a Eurostat legal requirement under EU Regulation 1165/98, as amended. Two indices are compiled for the release – the monthly index of production and the monthly index of turnover. The monthly index of production measures the change, each month, in how much Irish industry is producing, while the monthly index of turnover measures the changes in the level of sales each month. The IPT is prepared in compliance with the Eurostat requirements and the international standards set by the UN in its International Recommendations for the Index of Industrial Production (2010). As such, it is not possible to change the methodology by which the IPT is prepared.
The article references the impact of multinational enterprises on the IPT. In line with the EU and international requirements, the IPT includes outsourced production as part of an enterprise’s Irish production. Given the scale of contract manufacturing and outsourcing attributable to Ireland under these standards, this requirement to include outsourced production in Irish production data has given rise to high levels of short-term volatility in the indices included in the IPT release. As a consequence, and to support better understanding of the IPT, the CSO advises that a longer-term view of the indices be taken and also presents statistics on a rolling quarterly basis in the monthly IPT release to support users in taking a longer-term view.
In line with best practice of frequent methodological review, the CSO is also reviewing the current approach to seasonal adjustment used in the monthly IPT and will apply any findings from that review. Additionally, and as part of its ongoing consideration of user needs, the CSO continues to refine and develop its outputs and communications to support users in understanding and utilising official statistics like the IPT.
