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Latvia

Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.

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Production in construction

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Central Statistical Bureau of Latvia (CSB)

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The Construction Production Index (IPC) is an important indicator for monitoring and evaluating the development of the construction sector and is widely used in the analysis of business cycles. The production index for construction measures changes over time in the price-adjusted output of construction (Section F of NACE Rev. 2). It provides an approximation measure of the volume trend in value added over a given reference period.

The index is obtained for

  • Total construction works
  • Construction of Buildings
  • Construction of Civil engineering
  • Specialised construction activities

and presented in the following forms:

  • Unadjusted
  • Calendar adjusted
  • Seasonally adjusted

The IPC is also used to provide data for national accounts for the calculation of GDP.

24 March 2025

Construction production indices characterize changes of construction production during the reference period in comparison with the base period. Construction output consists of the amount of own-account construction works completed by the construction enterprises.

Value of construction work done during the reference period is aggregated into NACE classes and deflated by corresponding construction cost indices separately. If the production data is not available turnover data is used instead. VAT is excluded.

Calculation of IPC is based on the chain index method; within the framework of it the average quarterly volume of construction work done (at constant prices) previous year is used as a calculation basis and the value added of construction enterprises produced two years ago is used as weights.

Reporting unit - enterprise

Observation unit - KAU

The Statistical Business Register based list of active economic units which are active in the field of construction. There are about 8000 enterprises in the target population.

Reference area are construction works done in Latvia and abroad.

Quarter

Statistical data is always analyzed in detail and validated using automatic validation procedures that are updated quarterly based on the shortcomings identified. During the data collection process, all individual data are examined in detail to guarantee the quality and reliability of the data obtained, as well as compliance with methodological guidelines. Any errors, omissions or abnormal values ​​identified are corrected. At the time when data are provided to Eurostat and published nationally the response rate is the same. Telephone contacts are used to follow up missing responses after the 15th day of the quarter. Imputation is used to compensate the non-response; this is made by means of previous replies and/or the replies of other businesses. Sample size made so that the coefficient of variation doesn't exceed 1.83%. The coefficient of variation is calculated for total construction production (value of own account construction work). 

Accuracy is achieved by eliminating non-sampling errors as much as possible. Although measures are being taken to update the sample, the main sources of error are the level of non-response and overcoverage. Given the deadlines set for the collection and processing of the report, the non-response rate to the rapid assessment tends to be high. However, the report forms are still active after the submission deadline. This provides an opportunity to submit or update the data, which reduces the level of non-response.

IPC measurement error occurs in cases where the respondent misunderstands the required information or submits inaccurate information that does not comply with the reporting methodology. Such errors are corrected through automatic validations, while other identified errors are corrected by contacting the respondent. When filling in the e-report, the respondent has the opportunity to get acquainted with detailed instructions for filling in the report, which are regularly updated based on the identified shortcomings in filling in the report. In case the respondent refuses to make the correction, an imputation is made based on other available information, including information found in the administrative data.

When resolving cases of non-response by units, automatic reminders are sent to respondents about delays in submitting data. If the respondent does not provide data, an attempt is made to contact him by telephone. In cases where the respondent categorically refuses to submit data, the data is imputed.

Processing errors in the preparation of construction indicators are rare and are identified in a timely manner. Processing errors can occur in the process of data aggregation if the appropriate field attributes are not set for individual units, fulfilling the necessary conditions for algorithm operation. A small part of the data is imputed and the imputations are calculated based on the time series of the respondent's historical data, administrative data, data submitted in other reports or data of similar companies. The calculated imputation values ​​are evaluated by an expert and a decision is made to correct them if necessary. Thus, errors can also occur in the imputation coding process when assigning an inappropriate imputation code, as well as in entering the imputations themselves when there is a significant difference between the fast and final estimate values. Some processing errors may also occur during the processing of microdata for the sizing of a third part of the population, in cases where there are enterprises that have historically been included in construction but no longer carry out actual construction work. When identifying such companies, the administrative data are adjusted. In some cases, there are often respondents who adjust or refine the values ​​submitted to the final estimate, which creates a difference between the final estimate and the quick estimate. In cases where such actions have a significant impact on the value of the index, the respondent is contacted to find out the reason for the change.

Index number

Index of Production in Construction (henceforth IPC) is calculated using chain-linked method with the annual overlap technique, where calculation is based on the average previous year’s quarterly volume of construction works (at constant prices) and value added accumulated by enterprises two years ago in breakdown by NACE divisions is used as weights. The IPC is calculated by recalculating production output indicator at constant prices with the help of construction cost indices. The weights are changed every year, thus changes in the structure of construction are taken into account. Average volume of output in construction in 2021 is used as the base for the comparison.

Imputation is the process used to assign replacement values for missing, invalid or inconsistent data that have failed edits. This includes automatic and manual imputations; it excludes follow-up with respondents and the corresponding corrections (if applicable). Thus, imputation as defined above occurs after data collection, no matter from which source or mix of sources the data have been obtained, including administrative data. 

This indicator is influenced both by the item non-response and the editing process. It measures both the relative amount of imputed values and the relative influence on the final estimates from the imputation procedures. The unweighted imputation rate for a variable is the ratio of the number of imputed values to the total number of values requested for the variable. The weighted rate shows the relative contribution to a statistic from imputed values; typically a total for a quantitative variable. For a qualitative variable, the relative contribution is based on the number of units with an imputed value for the qualitative item.

The reporting period

  Imputation rate

  Weighted imputation rate

1st quarter of 2024

9.46

8.19

2nd quarter of 2024

8.05

3.32

3rd quarter of 2024

9.14

 6.62

4th quarter of 2024

9.17

7.91

The data are compiled based on the CSB quarterly questionnaire on construction (1-construction).

Framework source: Statistical Business Register (SUR)

Type of sample: single - stage sample

Sampling coordination: independent sampling

Stratification variables: target population, industry, size class by number of employees

Allocation: optimal proportional

Sampling: A stratified simple random sample

Target population: In 2024, economically active statistical units whose main activity is NACE Section F, excluding industry 4110 and excluding statistical units whose ISK starts with S13.

The sample includes all enterprises with at least 20 employees and NACE Rev. 2. F 4213 with at least 5 employees. Units with fewer employees are surveyed at random using stratified simple random sampling. Statistical units with less than 5 employees (except NACE Rev. 2 F 4322, 4332, 4334, 4339 - with less than 20 employees and NACE Rev. 2 F 4333, 4399 with less than 7 employees) are valued, using administrative data (volume of VAT transactions).

The number of units in each part of the population varies. It is adjusted to include new economically active enterprises (according to the above criteria) in the set of surveyed statistical units, specifying the economic activities of enterprises, receiving additional or clarified information from respondents, as well as more up-to-date data from administrative data sources.

 

Year

Sample size

2025 1000

2024

1000

Quarterly.

The construction production index is published at 13:00 o' clock of local time on the 40th day after the end of the reference quarter; if the 40th day is on a weekend or on a holiday then it is published on the next working day. The questionnaires are sent to the reporting unit at the end of the year for all quarters of the coming year, asking for a reply for each reference quarter till the 15th of the following quarter. Data collection is normally closed 7 days before the publication.

For the whole Latvian territory, the same statistical concepts are applied.

Statistical information is comparable between EU countries.

The Construction production index is comparable since year 2000.