Measuring and Enhancing Services Trade Data and Information

Measuring and Enhancing Services Trade Data and Information Conference September 14, 2010 U. S. Department of Commerce, Washington, DC Service Statistics Improvements by the U. S. Census Bureau What We Have Done and Plans for the Future Mark E. Wallace Chief, Service Sector Statistics Division U. S. Census Bureau Mark. e. wallace@census. gov September 14, 2010

Coverage of the U. S. Service Sector 55 % of GDP • Includes traditional service industries • Does not include retail trade, wholesale trade, public administration 2

U. S. Census Bureau Service Sector Programs • Economic Census (Quinquennial) covering years ending in “ 2” and “ 7” • Service Annual Survey (SAS) • Quarterly Services Survey (QSS) 3

Services Programs • Collect more detailed data on services beyond just receipts and revenues • Service products • Purchased services and expenses • Annual data on exported services available for 50 industries 4

Economic Census (Quinquennial) Covering Years Ending in “ 2” and “ 7” • Census of service industries covers 4. 7 million establishments • Service industry activities cover the majority of the economic sectors (12 of 20) accounting for close to 55 percent of GDP – Utilities; Transportation and Warehousing; Information; Finance and Insurance; Real Estate and Rental and Leasing; Professional, Scientific and Technical Services; Management of Companies and Enterprises; Administrative and Support and Waste Management and Remediation Services; Educational Services; Health Care and Social Assistance; Arts, Entertainment and Recreation; Accommodation and Food Services; Other Services (except Public Administration) 5

History of the Collection of Data on Services from the Economic Census • 1929 Census of Distribution established (retail and wholesale trade and hotels) • 1933 Census of Business (selected service industries such as personal services, repair services, and others added) • 1935 • 1939 • 1948 Resumed after war covering years ending in ‘ 3’ and ‘ 8’ • 19541953 Census delayed one year • 1958 • 1963 • 1967 Begin covering years ending in ‘ 2’ and ‘ 7’ • 1972 6

History of the Collection of Data on Services from the Economic Census (continued) • 1977 Major expansion of service industries, including health, educational, and social services; added many industries comprised of non-profit organizations • 1982 • 1987 • 1992 Major expansion including coverage of transportation, telecommunications and utilities; and finance, insurance, and real estate industries • 1997 • 2002 • 2007 Currently releasing data on a flow basis • 2012 Next Census! 7

Analysis and Dissemination Core Business Statistics (Economic Census-wide): • Advance Report – March 2009 • Franchising Report – September 2010 • Bridge Between 2007 NAICS and 2002 NAICS Report – June 2011 • Comparative Statistics Report – June 2011 8

Analysis and Dissemination NAICS Sector Reports (Service Sectors): • Industry Series – March - November 2009 • Geographic Area Series – October 2009 – August 2010 • Establishment and Firm Size – October – December 2010 • Final Product Lines – October – December 2010 • Miscellaneous Subjects – December 2010 – March 2011 • ZIP Code Statistics Series - June 2011 9

Specific Data on Exported Services from the Economic Census Covering Service Industries • NAICS Sectors: – – – – 22 Utilities - 2 industries 51 Information - 34 industries 52 Finance and Insurance - 12 industries 53 Real Estate and Rental and Leasing - 4 industries 54 Professional, Scientific, and Technical Services - 46 industries 55 Management of Companies and Enterprises - 1 industry 56 Administrative and Support and Waste Management and Remediation Services - 43 industries – 71 Arts, Entertainment, and Recreation - 4 industries – 81 Other Services (except Public Administration) - 10 industries Total=156 industries 10

Service Annual Survey (SAS) (Prior to Expansion for 2009 Survey Year) • NAICS Sectors: – 48/49 Truck Transportation, Messenger Services and Warehousing – 51 Information – 52 Securities, Commodities, and Other Financial Investments – 532 Rental and Leasing Services – 54 Professional, Scientific, and Technical Services – 56 Administrative and Support and Waste Management and Remediation – 62 Health Care and Social Assistance – 71 Arts, Entertainment, and Recreation – 81 Other Services (except Public Administration) 11

History of the SAS 1983 Annual services coverage begun for about two dozen industry/industry groups Mid-1980 s to 2008 Incremental expansion of annual coverage of service industries, eventually reaching about 30 percent of GDP 2009 Expansion of coverage of the SAS to 55 percent of GDP, matching coverage of the Economic Census 12

Service Annual Survey (SAS) (After Expansion for 2009 Survey Year) • NAICS Sectors: – – – 22 Utilities 48/49 Transportation and Warehousing (complete sector) 51 Information 52 Finance and Insurance (complete sector) 53 Real Estate and Rental and Leasing (complete sector) 54 Professional, Scientific, and Technical Services 56 Administrative and Support and Waste Management and Remediation Services 61 Educational Services 62 Health Care and Social Assistance 71 Arts, Entertainment, and Recreation 72 Accommodations and Food Services 81 Other Services (except Public Administration) 13

Service Annual Survey (SAS) • Sample of 45, 000 Companies (when expanded: 70, 000 companies) • Mandatory Survey with high response • Estimates benchmarked to the Census of Services and Finance • Data Items Collected • Revenue • E-commerce Revenue • Expenses 14

Specific Data on Exported Services from the Service Annual Survey (SAS) • Have collected from 144 industry categories in NAICS sectors 51, 52, 53, 54, 56, 71, and 81 • Poor results from annual survey collection • Industry detail reduced to approximately 50 categories 15

Quarterly Services Survey (QSS) (Prior to Expansion for 2009) • • • Conducted quarterly since 2004 First new Census Bureau indicator in over 30 years. NAICS Sectors 51, 54, 56, 62 (part) Sample of 6, 000 companies Sub-sample of SAS Voluntary survey 16

Quarterly Services Survey (QSS) • Data Items Collected – Revenue – Class of Customer – Total discharges and number of in-patient days (hospitals) – No data on exported services 17

Quarterly Services Survey (QSS) (After Expansion for 2009) • NAICS Sectors 22, 48/49, 51, 52, 53, 54, 56, 61, 62 (complete sector), 71, 72, 81 • Sample of 15, 000 companies • Sub-sample of SAS • Voluntary survey • Beginning in March 2011, will cover 55 percent of GDP, matching coverage of the SAS and the Economic Census 18

Service Statistics Improvements What We Have Done • Established new Quarterly Services Indicator • Expanded detail on service purchased services • Developed North American Product Classification System for products of services industries 19

Overview of Service Statistics Program Frequency and Coverage – Where We Were in March 2009 (when FY 2009 Funding for Services Expansion Initiative Received) Coverage Number of Industries Annual Revenues 12 390 (5/6) $8. 0 trillion (2002) 55% Annually 7 complete 3 partial 203 (5/6) $5. 2 trillion (2004) 30% Quarterly Services Quarterly Survey 3 complete 1 partial 4 (5/6) $3. 2 trillion (2005) 17% Program Frequency Economic Census 5 years Service Annual Survey Sectors % of GDP 20

Expansion of Service Sector Statistics QSS – Expansion being conducted in 4 phases between 2009 and March 2011 to achieve 55% GDP coverage SAS – 2009 SAS (was mailed in January 2010 and will be published in first quarter of 2011) to achieve 55% GDP coverage 21

Overview of Service Statistics Program Frequency and Coverage: Where We Will Be Next Year Coverage in March 2009 Coverage by March 2011 Program Frequency Economic Census 5 years Sectors 12 % of GDP Sectors % of GDP 55% 12 55% Annually 7 complete 3 partial 30% 12 55% Quarterly Services Quarterly Survey 3 complete 1 partial 17% 12 55% Service Annual Survey 22

Quarterly Services Survey Expansion Expedited Timeline (Percent of GDP=4%) (Percent of GDP=6%) (Percent of GDP=8%) (Percent of GDP=20%) 23

Service Annual Survey Expansion Timeline January 2010 24

Service Annual Survey Expansion Product Detail to be Added Beginning with the 2011 SAS (to be Collected During 2012) • Product detail to be added for the 2011 SAS • These data will be built upon the 2007 Economic Census and the 2009 SAS Industry Expansion • Sampling techniques will support reliable product statistics • Important for improving National Accounts data • New product categories for SAS are based on BEA priorities, reportability, and effect on sample size • 2011 SAS with product categories will be published in January 2013 25

Thank You! Website address: www. census. gov Contact Information U. S. Census Bureau Mark. E. Wallace@census. gov 26