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Topics @ a Glance - Manufacturing Statistics
Using Manufacturing Statistics
Frequently Asked Questions
What are the Measures of Production?

Production is the process whereby inputs of labour, materials (produced or natural), accumulated assets and knowledge are combined to provide outputs of goods and services. In national accounting, this is measured by Gross Domestic Product (GDP). GDP is the sum of gross value added of each industry, plus taxes less subsidies on products.

Gross Value Added (GVA) for an industry is equal to:
    value of goods and services produced
    less the value of inputs used in production
Industry Value Added (IVA) can also be used to measure production but its concept varies from that for GVA, with GVA lining up more closely with the national accounts concept of production. GVA is derived using tables where the total supply and use of individual commodities in the economy are balanced with each other. This balancing process therefore results in improvements in the overall coherence of the estimates within the broader national accounts. However, IVA is not adjusted for a number of national accounting conventions as the information to make these adjustments cannot be collected through the Economic Activity Survey. The adjustments are listed in; WHAT ARE THE COMPONENTS OF INDUSTRY VALUE ADDED, GROSS VALUE ADDED AND OPERATING PROFIT BEFORE TAX?

GVA is more appropriately used for measuring the industry against the whole economy. Long time series of GVA are available for both chain volume measures and current prices series. GVA estimates for manufacturing are available at ANZSIC Division (chain volume measures and current prices) and Subdivision (chain volume measures only) level. State/territory information for GVA is not available. Total factor income, the main component of Gross State Product, can be used as an indicative measure of production in the state/territory although estimates are only available at ANZSIC Division level.

The advantage of IVA is the availability of data at a more detailed level of industry and by state/territory level. IVA data are available nationally for ANZSIC classes of the manufacturing industry. Analyses can also be performed in relation to income and expenses, assets and liabilities or capital expenditure in the manufacturing industry.

For more information about the relationship between IVA an GVA, see Technical Note 2; National Accounts in the publication, Business Operations and Industry Performance, 2000-2001 (cat. no. 8140.0).

Some estimates of GVA and IVA are released in the publications identified in the table directly below. Other data are available on request and enquiries should be made to National Accounts on Canberra (02) 6252 6711 or emailed to <>.

ItemPublicationLevel of data published

Gross value added (GVA)Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0)Quarterly and annual data for manufacturing. (Data on industries classified by ANZSIC subdivision available on request)
Australian System of National Accounts (cat. no. 5204.0)Annual data for manufacturing (Data on industries classified by ANZSIC subdivision available on request)

Total factor income by state and by industryAustralian National Accounts, State Accounts (cat. no. 5220.0)Annual data for manufacturing in total.

Industry value added (IVA) Australian Industry (cat. no. 8155.0)Includes annual estimates for the manufacturing industries at a national level.

Frequently Asked Questions

Topics @ a Glance- Manufacturing

Commonwealth of Australia 2008

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