User consultation- Business Prices June 2017

Closed 8 Aug 2017

Opened 27 Jun 2017

Feedback Updated 1 Nov 2017

We Asked

We asked users of the business prices publications, Producer Price Index (PPI) and Services Producer Price Index (SPPI) to comment on some ONS’ proposed process improvements to the publication and consider any impact these improvements would have on their use of the statistics.

We consulted on five proposals:

  • Removal of the net sector aggregate for both PPI and SPPI
  • Aggregation and publication of PPI for both domestic output, exports and total output prices
  • Inclusion of proxies in the aggregate SPPI to represent the whole service sector
  • Review the demand for seasonal adjustment in the PPI and SPPI series’
  • Streamlining data made available in PPI and SPPI statistical releases 

You Said

We received five written responses, three of which were completed online and two offline responses. These responses were from a range of external users of the business prices data. The comments included within the responses were extremely useful. The main feedback was:

  • The net sector aggregate is used in calculations within some organisations that are main users of our data. These organisations require more clarity on the comparison between the current Net sector and Gross sector indices and any discrepancies between them, to consider their future use.
  • All consultation respondents were interested in seeing a publication of the PPI with a domestic, import and export splits.
  • Respondents were unsure about the inclusion of proxies to aggregate the whole service sector within SPPI, stating further information on what these are and whether there would be a marker to identify which of the indices are proxies would be useful.
  • Seasonal adjustment of the outputs was not considered to be key, and there was not a great demand for any further seasonal adjustment.
  • Streamlining the data and publishing at a higher level may cause problems for some users of business prices therefore further information on how this would be represented is needed.

We Did

To date:

  • Met with two users of Business Prices based on their responses and discussed their requirements in more detail. We have also corresponded with a third respondent.
  • Considered the use of seasonal adjustment alongside the International Monetary Fund (IMF) PPI manual.

We intend to:

  • Conduct more correspondence with users of business prices on their requirements from the PPI and SPPI publications.
  • Conduct events/interactions to keep users of business prices informed of progress on the process changes.
  • Produce and communicate a plan and timeline for producing PPI on a domestic, import and export basis.
  • Investigate if the use of proxies within the SPPI would add value to the overall aggregate and communicate further with users of business prices once the investigation is complete. 
  • Work with users and stakeholders of business prices to develop the correct balance in what we are publishing. 

Overview

Office for National Statistics (ONS) is undertaking a programme of transformation. As part of this programme, we will improve the statistical and conceptual quality of our business price indices, the Producer Price Index (PPI) and Service Producer Price Index (SPPI).

Important components of this are improved sampling methodology across business prices surveys, more frequent updating of our weights via the introduction of annual chain linking, and a review of the coverage of important service sector price indices and improvements to simplify existing index structures. These improvements will reduce risks to quality, improve international comparability and streamline data available to UK users.

In addition, these improvements will also enable other elements of our transformation programme, such as providing improved deflators to allow the UK National Accounts development of annual, volume-based, balanced supply and use tables (SUT) using previous year’s prices (PYP).

Amendments to align with a new European regulation known as the Framework Regulation Integrating Business Statistics (FRIBS) will also be implemented. Adherence to this regulation will bring about important developments, which are vital for improving the UK National Accounts as well as ensuring that our reporting is consistent and comparable.

This user consultation aims to capture user views to help shape these improvements.

Why We Are Consulting

We are asking for your views on five proposed changes to the outputs produced for the Producer Price Index (PPI) and Services Producer Price Index (SPPI). These changes are:

  1. Removal of the net sector aggregate for both PPI and SPPI.
  2. Aggregation and publication of PPI for domestic output, exports and total output prices.
  3. Inclusion of proxies in the aggregate SPPI to represent the whole service sector .
  4. Review the demand for seasonal adjustment in PPI and SPPI series'.
  5. Streamline data made available in PPI and SPPI statistical releases.

The consultation will close on 8 August 2017. We will publish an initial summary of our findings within 12 weeks of the consultation closing date. Your response will be treated in accordance with our Privacy Policy. If you prefer to answer the questions off-line, a hard copy of the questionnaire is available at the bottom of this page. If you have any queries, please email business.prices@ons.gsi.gov.uk.

What Happens Next

This consultation is now closed. Thank you for your responses. 

We will publish an initial summary of our findings within 12 weeks of the consultation closing date. 

 

Audiences

  • Businesses
  • Government
  • Researchers

Interests

  • Business
  • Economy
  • Statistics