Trend indicator of renovation building: documentation of statistics

The trend indicator of renovation building describes cyclical trends in building construction in the country as a whole, divided into renovation building and newbuilding. The data are collected from a range of different sources and they are published on a quarterly basis. Development in building construction is measured based on the turnover of construction enterprises and reports on contract details.

The population of the trend indicator of renovation building comprises all enterprises with at least five employees in the following industries listed in Statistics Finland’s Register of Enterprises and Establishments: 41 Construction of buildings and 43 Specialised construction activities (excl. 43120 Site preparation, TOL 2008).

Construction enterprise

The data of the statistics are published as point figures and change percentages.

The year 2021 is used as the base period.

The reference period of the statistics is a quarter.

The trend indicator of renovation building is published on the level of the whole country.

The sample comprises the construction enterprises included in the population that employ at least 60 persons or have a turnover of more than EUR 40 million or a balance sheet value of more than EUR 300 million and that participate in the collection of renovation building data from construction enterprises. Large construction enterprises exceeding the threshold are comprehensively represented in the statistics. All enterprises included in the population that are below the threshold are also included in the sample.

The strata are based on the size and industrial classification of the enterprise. Large enterprises are grouped as a separate stratum. Small enterprises with fewer than five employees are not included in the statistics. Many small construction enterprises specialise in renovation building, such as installation and finishing work.

In 2021, most (86%) of the construction enterprises were small businesses with fewer than five employees. However, the turnover of construction enterprises with fewer than five employees only accounts for 17 per cent of the construction sector turnover.

The time series of the trend indicator of renovation building start from the first quarter of 2021.

Separate data contained in the statistics are published on a quarterly basis.

The share of renovation building may vary substantially by enterprise each year. Because of delays in the publication of the renovation building statistics, the figures for the share of renovation building may be two years old. The latest information available in early 2023 is for 2021.

The trend indicator of renovation building is published about 70 days after the end of the reference period.

The data are published on the dates specified in the release calendar.

The data contained in the trend indicator of renovation building are regionally comparable for the country as a whole.

The time series of the trend indicator of renovation building are comparable with each other. In connection with the updating of the group of enterprises, the time series preceding the update is recalculated based on the old enterprise structure. The recalculated time series is chained from the old time series with the rates of change calculated using the new enterprise structure as a basis.

Data on renovation building are published by Statistics Finland each year and they cannot be broken down into quarterly data. Statistics Finland publishes the index of construction turnover on a monthly basis. However, its data cannot be broken down into the turnover of renovation building and newbuilding. Statistics Finland also publishes statistics on building and housing construction describing newbuilding subject to permit. They do not contain any figures for renovation building subject to permit.

The data used in the trend indicator of renovation building come from three sources:

1.    Annual statistics on renovation building

From the 2012 statistical year onwards, the statistics have been based on a sample-based inquiry sent to construction enterprises with at least five employees. The sample comprises all enterprises with at least 60 employees (the minimum was raised from 50 to 60 in the 2019 statistical year) and enterprises with a turnover of more than EUR 40 million or a balance sheet of more than EUR 300 million. Enterprises under the threshold but employing at least five persons have been selected for the sample based on random sampling.

The sampling frame of the statistics is based on Statistics Finland’s Register of Enterprises and Establishments. The inquiry is carried out together with the financial statements inquiry for enterprises and its financial statements database is used to analyse enterprises’ background data. The financial statements statistics also contain figures taken from the business tax data of the Finnish Tax Administration.

2.    Data on self-assessed taxes collected by the Finnish Tax Administration

The index is calculated using data on self-assessed taxes derived from the Tax Administration. The data contain the value added tax data of the enterprises submitting the data on a monthly, quarterly and annual basis. Enterprises with an annual turnover of more than EUR 100,000 must submit the data on a monthly basis. Enterprises with an annual turnover of between EUR 30,001 and EUR 100,000 must submit the data on a quarterly basis. Enterprises with a maximum annual turnover of EUR 30,000 must submit the data on an annual basis.

3.    Reports on contract details submitted to the Finnish Tax Administration

Enterprises ordering construction work must submit the details of the contracts they have concluded to the Finnish Tax Administration. The report must be submitted if the enterprise orders any of the following construction work from another enterprise: 

• Building construction and related preparatory, demolition and installation work or any other construction services referred to in the Value Added Tax Act.
• Erection and dismantling of scaffolding
• Leasing of employees for construction work.

The report is only required if the value of a contract exceeds EUR 15,000 (excl. VAT). A separate report must be submitted for each contract. The contract may be oral or in writing.

The first report on contract details must be submitted when the construction work starts at the site. If advance payments are made for the work, the report must be submitted for the month during which the advance payments have been made.

Contract details must be submitted by the fifth day of the second month following the reporting month. For example, the details for July must be submitted by 5 September.  The last report must be submitted for the month for which the last invoice for the work is paid.

Statistics Finland does not collect data separately for the trend indicator of renovation building.

Large enterprises exceeding the threshold (see: Coverage) are grouped as a separate stratum and smaller enterprises are grouped in a stratum generated for renovation building of construction enterprises, in which consideration is given to the size and industrial classification of the enterprise. 

Shares of renovation building and newbuilding are generated for the strata by using the annual data collected for the renovation building statistics.

Domestic turnover details for the construction enterprises included in the statistics are taken from the Finnish Tax Administration’s data on self-assessed taxes for each target month and the value data for the contracts concluded by the enterprises are taken from the reports on contract details. These data are multiplied by the stratum-specific shares of renovation building and newbuilding so that monthly value data for renovation building and newbuilding can be generated for the enterprises. The value data are compared with value data for the previous year that have accumulated over the same period as the value data for the target month. The data are used as a basis for the time series of point figures, in which the monthly average for 2021 is 100.  

Contract details accumulate over many months and they also include correction and deletion notifications. When the data are processed, the latest report on contract details received is used and outdated reports are deleted. When the rates of change are calculated, the delay in the accumulation of contract details is taken into account by using comparison data that have accumulated over the same period as the data for the target month for which the calculations are made.

The data are validated based on checklists. The focus in the checklists is on large observations. Errors in the data are corrected based on expert assessments.

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The data materials are protected at all stages of processing with the necessary physical and technical solutions. All unit-specific figures contained in the calculation data are confidential. The data are only handled by persons who need the data in their work. The use of data is restricted by usage rights. The phases of the statistical production process produce an end result that does not enable identification of individual data producers. All employees have signed a pledge of secrecy, where they have obliged to keep secret the data prescribed as confidential by virtue of the Statistics Act or the Act on the Openness of Government Activities. The data of the statistics are published on a less detailed level, so the data protection of individual respondents is not endangered.

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The statistics are published on the website of the statistics.

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Releases and database tables are published in three languages, in Finnish, Swedish and English. The language versions of releases may have more limited content than in Finnish.

Information about changes in the publication schedules of releases and database tables and about corrections are given as change releases in the web service.

Revisions – i.e. improvements in the accuracy of statistical data already published – are a normal feature of statistical production and result in improved quality of statistics. The principle is that statistical data are based on the best available data and information concerning the statistical phenomenon. On the other hand, the revisions are communicated as transparently as possible in advance. Advance communication ensures that the users can prepare for the data revisions.

The reason why data in statistical releases become revised is often caused by the data becoming supplemented. Then the new, revised statistical figure is based on a wider information basis and describes the phenomenon more accurately than before.

Revisions of statistical data may also be caused by the calculation method used, such as annual benchmarking or updating of weight structures. Changes of base years and used classifications may also cause revisions to data.

Seasonally adjusted data in statistics on economic trends become revised because of the calculation method used. Additional information on a new time series observation is exploited in model-based calculation methods and this is reflected as changes in previous releases. Revisions of the latest figures to be seasonally adjusted are elaborated on in the releases and quality reports of statistics.

The data contained in the trend indicator of renovation building are revised in later releases. Accumulation of and corrections to the reports on contract details submitted to the Finnish Tax Administration and used as source data for several months after the target month is the main reason for the revisions.

The quality of the trend indicator of renovation building is evaluated at several stages of the statistical process. The results are compared with other sources of construction and renovation building data.

Quality management requires comprehensive guidance of activities. The quality management framework of the field of statistics is the European Statistics Code of Practice (CoP). The quality criteria of Official Statistics of Finland are also compatible with the European Statistics Code of Practice.

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