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Business receipts indices

To facilitate analysis of the short-term business performance of the services sector, business receipts indices (BRIs) are currently compiled for 22 selected service industries and 2 service domains, having regard to their importance in the services sector.

The data source for compiling the BRIs for most of the service industries (except those for the retail, food services and banking industries, and the tourism, convention and exhibition services domain) is the Quarterly Survey of Service Industries (QSSI) conducted by the Census and Statistics Department (C&SD) starting from 1993. The survey includes some 5 000 sampled establishments drawn from all establishments engaging 5 or more persons in the import/export trade, wholesale, transportation, warehousing and storage, courier, accommodation, information and communications, financing (except banking), insurance, real estate, professional, scientific and technical services, and administrative and support services industries. Certain establishments that are not engaged in service activities (e.g. local representative offices of overseas shipping and airline companies, and investment holding companies) are not covered. Besides, Government bureaux/departments and non-profit making organisations are excluded from the survey. The establishments covered are selected from the Central Register of Establishments maintained by the C&SD and updated by reference to records of the Business Registration Office of the Inland Revenue Department.

BRI for banking is compiled based on data obtained from the Hong Kong Monetary Authority.  BRIs for the retail and food services industries are compiled based on data obtained from the Monthly Survey of Retail Sales and the Quarterly Survey of Restaurant Receipts and Purchases (both are conducted by the C&SD) respectively.

Regarding the tourism, convention and exhibition services domain (or tourism domain for short), part of the data are obtained from the Hong Kong Tourism Board.

A service domain differs from a service industry in that it comprises those economic activities which straddle different industries but are somehow related to a common theme. It may include all activities carried out by all establishments in a service industry that is closely related to the domain. For a service industry that is less closely related, however, only a portion of the establishments in the industry or even only part of the economic activities of the establishments is related to the domain. Taking tourism domain as an example, it includes all services of all hotels and travel agents; and some (those involving visitors as customers) but not all of the services of restaurants, retailers and transport operators.

Starting from the first quarter of 2009, BRIs are compiled based on the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, and the series have been backcasted to the first quarter of 2005 (with the quarterly average of 2008 as base period).  Users may refer to the feature article "Revision of the Hong Kong Standard Industrial Classification" published in the November 2008 issue of the Hong Kong Monthly Digest of Statistics for more details on the revision of HSIC.

Retail sales and restaurant receipts

Statistics on retail sales and restaurant receipts are compiled from the results of the Monthly Survey of Retail Sales and the Quarterly Survey of Restaurant Receipts and Purchases respectively.  The surveys include sampled establishments drawn from all the retail and catering establishments registered with the Business Registration Office of the Inland Revenue Department.

Retail sales statistics are primarily intended to measure the sales receipts of goods sold by local retail establishments, for gauging the short-term business performance of the local retail sector. They cover consumer spending on goods, but not on services. Moreover, they include spending on goods by visitors in Hong Kong but not by Hong Kong residents outside Hong Kong. Hence they should not be regarded as a comprehensive indicator of overall consumer spending.

Users interested in the trend of overall consumer spending should refer to the quarterly series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product (GDP). Compiled from a wide range of data sources, PCE covers consumer spending on both goods (purchased from all channels) and services by Hong Kong residents whether domestically or abroad.

Retail sales and restaurant receipts statistics are compiled based on the Hong Kong Standard Industrial Classification (HSIC) Version 2.0 and the series have been backcasted to October 2004 and the fourth quarter of 2004 respectively. Users may refer to the feature article "Revision of the Hong Kong Standard Industrial Classification" published in the November 2008 issue of the Hong Kong Monthly Digest of Statistics for more details on the revision of HSIC.

The value indices of retail sales and restaurant receipts measure the changes in value terms, while the volume indices of retail sales and restaurant receipts are derived from the value indices by adjusting for price changes.  The series of value and volume indices of retail sales and restaurant receipts have been re-referenced, taking October 2014 to September 2015 as the new reference period.  An enhanced technical feature in the re-referenced series is that the volume indices of retail sales and restaurant receipts are compiled based on the chain-linking approach as stipulated in the International Recommendations for Distributive Trade Statistics 2008 and System of National Accounts 2008 adopted by the United Nations Statistics Division.  Users may obtain detailed information about the re-referencing exercise here.

Labour Productivity Index

Labour Productivity Index (LPI) is compiled by dividing a real output index by an index of labour input. Conceptually, it is compiled as:

        (VAt divided by VA0) divided by (HWt divided by HW0) multiple by 100
where    
VAt  =   chain volume estimate of value added in period t;
VA0 =   chain volume estimate of value added in period 0;
HWt =   total person-hours worked in period t; and   
HW0 =   total person-hours worked in period 0.

For sectoral LPIs, real output is measured by the chain volume estimates of value added as compiled in the national accounting framework.

Labour input is measured by the person-hours worked, which is calculated as the product of the number of persons engaged and the average actual hours of work. Data on the average actual hours of work are obtained from the General Household Survey (GHS), while the number of persons engaged in each sector is mainly based on the Composite Employment Estimates (CEE).

For compiling the LPI for the economy as a whole, the real output used is the chain volume measure of GDP, while labour input is based on the CEE of the whole economy together with the average actual hours of work based on GHS.

Under the existing methodology, a few economic activities are not selected for the compilation of LPI due to:

(i) conceptual reasons, e.g. limitations in chain volume measure of public administration and professional, scientific and technical activities estimated by input cost and labour input methods; and

(ii) practical reasons, e.g. incomplete coverage of employment figures for some activities.
 
 

Feature Articles

Title
Release Date
(Latest in the series)

Statistical Classifications

Title
Release Date

Glossary of Terms

Term
Definition
Business receipts and other income
(i) For the Industry Section of Transportation, Storage and Courier Services :
Business receipts and other income
= passenger revenue + freight revenue (including revenue from rendering cargo forwarding, warehousing and courier services) + rental for charter hire of transport equipment + other business receipts + rental income from letting/subletting land and premises + income from other sources

(Business receipts and other income do not include insurance claims, gain/loss on disposal of fixed assets, gain/loss on trading securities as well as investments on futures and fuel hedging.);

(ii) For information and communications industry :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest income + rental income from letting/subletting land and buildings + royalty receipts from patents, trademarks, copyrights, and franchises + dividends + gain/loss from trading of financial assets + income from other sources;

(iii) For banking industry :
Business receipts and other income (for domestic banking units)
= commissions and fees received in respect of credit, bills transactions and loans (excluding syndicated loans) + charges received in respect of current account operations, executor and trustee services, guarantees, portfolio management, custody and remittance services + charges received in respect of investment banking services + commissions and fees received in respect of syndication of loans + commissions and fees received in respect of financial assets dealing and broking + administrative fees received from parent and affiliated companies + receipts from other banking and financial services rendered + rental income from letting/subletting land and buildings + net interest receipts (viz. interest received less interest paid) + profit or loss from foreign exchange dealing + profit or loss from trading in securities + dividends received + income from other sources;

(iv) For financing (except banking) industry :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + interest income + rental income from letting/subletting land and buildings + dividends + gain/loss from trading of financial assets + income from other sources;

(v) For insurance industry - insurance underwriting :
Business receipts and other income
= total premiums received + total reinsurance commissions received in respect of direct insurance and inward reinsurance + net income from investment + receipts from services rendered + income from other sources;

(vi) For insurance industry - activities auxiliary to insurance and pension funding :
Business receipts and other income
= receipts from services rendered + rental income from letting/subletting land and buildings + income from other sources;

(vii) For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest income + rental income from letting/subletting land and buildings + dividends + gain/loss from trading of financial assets + government subvention + royalty receipts from patents, trademarks, copyrights, and franchises + income from other sources;

(viii) For travel agency, reservation service and related activities :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest income + rental income from letting/subletting land and buildings + revenue from services related to outbound travel, inbound travel, domestic travel and other travel services + revenue from airline, vessel, train and bus tickets sold + freight revenue + income from other sources
Changes in stocks
For (i) the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services, and (ii) the Industry Section of information and communications, professional and business services :
Changes in stocks
= book value of stocks at end of reporting period – book value of stocks at beginning of reporting period
Compensation of employees
Compensation of employees = Wages and salaries to operatives and other employees (including share-based payments granted to employees) + Payments in kind and employer's social security expenditure + Payments to outworkers
Compensation of employees and payments to labour-only sub-contractors
Compensation of employees and payments to labour-only sub-contractors
= Remuneration to direct employees (comprising wages and salaries to operatives and other employees; payments in kind and employer's social security expenditure as well as any share-based payments) + Payments to labour-only sub-contractors
Construction site
A construction site refers to a demarcated locality (of an appreciable area at the least) where one or more major stages or processes of building/construction works, such as site formation, piling, caissons and superstructure erection, are being carried on. It differs from fitting, decoration and other construction works done on erected buildings and structures in that the entire building/structure in the construction site in question, being unfinished, is not issued with a Certificate of Completion/Occupation Permit and is as yet not ready for use according to its intended purposes.
Establishment
An establishment is ideally an economic unit which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted and in this case, the reporting unit is treated as an establishment.
Gross additions to fixed assets
Gross additions to fixed assets = Acquisitions of fixed assets – Proceeds from disposal of fixed assets, where fixed assets include (a) land and buildings; (b) plant and machinery; and (c) other fixed assets.
Gross floor area of buildings
The gross floor area of a building is defined as the area contained within the external walls of the building measured at each floor level, including balconies and thickness of the external walls.
Gross margin of real estate development projects
Gross margin of real estate development projects
= Value accrued to project – Total project expenses + Interest payments to finance real estate development projects
Gross surplus
(i) For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
Gross surplus
= sales and other receipts – compensation of employees – operating expenses – total value of purchases of goods for sale + changes in stocks

(ii) For the Industry Section of Transportation, Storage and Courier Services :
Gross surplus
= business receipts and other income – compensation of employees – operating expenses

(iii) For information and communications, professional and business services sectors :
Gross surplus
= business receipts and other income – compensation of employees – operating expenses – total value of purchases of goods for sale + changes in stocks of goods for sale

(iv) For financing (except banking) industry :
Gross surplus
= business receipts and other income – compensation of employees – operating expenses

(v) For architectural, surveying and engineering services :
Gross surplus
= total receipts – consumption of materials and supplies; fuels, electricity and water, and maintenance services – architectural, surveying and engineering design and consultancy fees – miscellaneous operating expenses – compensation of employees

(vi) For construction sector :
Gross surplus
= total receipts – payment for sub-contract works rendered by fee sub-contractors – consumption of materials and supplies; fuels, electricity and water, and maintenance services – miscellaneous operating expenses – compensation of employees and payments to labour-only sub-contractors

(vii) For real estate activities :
Gross surplus
= total receipts – consumption of materials and supplies; fuels, electricity and water, and maintenance services – miscellaneous operating expenses – interest payments to finance real estate development projects – compensation of employees
Gross value of construction works performed
Gross value of construction works performed
= Construction works performed as main contractor at (i) construction sites; (ii) other minor new construction works locations; and (iii) erected buildings and structures + Construction works performed as sub-contractor at (i) construction sites; (ii) other minor new construction works locations; and (iii) erected buildings and structures
Hong Kong Standard Industrial Classification (HSIC)
Hong Kong Standard Industrial Classification (HSIC) is a statistical classification framework for classifying economic units into industry classes based on their major activities.
Index of industrial production
Movement in index of industrial production reflects the changes in local industrial output in real terms, i.e. changes in the volume of local production after discounting the effect of price changes.
Local office
A local office is an office that only takes charge of the business in Hong Kong (but nowhere else) on behalf of its parent company located outside Hong Kong.
Main contractor
A main contractor is one who enters into a contract directly with a property developer or the client party of a project, and assumes full responsibility for the satisfactory completion of the construction works. A sub-contractor is one who accepts orders from the main contractor or another sub-contractor for specific tasks forming part of a main contract.
Miscellaneous operating expenses
(i) For architectural, surveying and engineering services : Miscellaneous operating expenses mainly include rent, rates and government rent for land and buildings; rentals for machinery, equipment and vehicles; interest payments, insurance premiums, business management fee/management fee and administration charges paid to related companies, accounting, audit and legal fees, expenditure on computer hardware and software; and any other operating expenses not elsewhere specified.

Miscellaneous operating expenses do not include consumption of materials and supplies; fuels, electricity and water, and maintenance services; architectural, surveying and engineering design and consultancy fees; provision, loss on disposal of fixed assets, bad debts, fines, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and tax payments.

(ii) For construction sector : Miscellaneous operating expenses mainly include rent, rates and government rent for land and buildings; rentals for machinery, equipment and vehicles, architectural, surveying and engineering design and consultancy fees, interest payments, insurance premiums, business management fee/management fee and administration charges paid to related companies, accounting, audit and legal fees, expenditure on computer hardware and software; and any other operating expenses not elsewhere specified.

Miscellaneous operating expenses do not include consumption of materials and supplies; fuels, electricity and water, and maintenance services; payment for sub-contract work rendered by fee sub-contractors, provision, loss on disposal of fixed assets, bad debts, fines, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and tax payments.

(iii) For real estate activities : Miscellaneous operating expenses mainly include rent, rates and government rent for land and buildings; rentals for machinery, equipment and vehicles, estate management expenses, interest payments apart from those for financing real estate development projects; insurance premiums, business management fee/management fee and administration charges paid to related companies, architectural, surveying and engineering design and consultancy fees, accounting, audit and legal fees, expenditure on computer hardware and software; and any other operating expenses not elsewhere specified.

Miscellaneous operating expenses do not include consumption of materials and supplies; fuels, electricity and water, and maintenance services; provision, loss on disposal of fixed assets, bad debts, fines, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and tax payments.
Non-residential buildings
Non-residential buildings include office buildings, hotels and boarding houses, multi-purpose commercial premises, and flatted factory bolcks and warehouses
Number of persons engaged
Number of persons engaged = Number of working proprietors, active partners and unpaid family workers + Number of employees
Operating expenses
(i) For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
Operating expenses
= rent, rates and government rent for land and buildings + interest payments, bill interest and loan interest + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + expenses on commissions (excluding patents, trademarks, copyrights and franchises expenses) + patents, trademarks, copyrights and franchises expenses + commissions/services charges paid to electronic money card and credit card issuers + charges paid to banks, deposit-taking companies and other financial institutions + transport and travelling expenses + postage and courier service expenses + newspaper and magazines, and communications expenses + advertisement or promotion, sample and exhibition + entertainment expenses + accounting, audit, legal fees + other professional and business services fees + business management fee/management fee and administration charges paid to related companies + expenses in maintaining representative offices outside Hong Kong + insurance premiums + staff training expenses + other operating expenses (including declaration, licence and business registration fees, subscription and membership fees and information technology related services expenses)

Operating expenses do not include provision, loss on disposal of fixed assets, bad debts, fine, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and tax payments.

(ii) For the Industry Section of Transportation, Storage and Courier Services :
Operating expenses
= Rent, rates and government rent for land and buildings + interest payments + charges paid to banks + service charge paid to electronic money card and credit card issuers + agency fees, commissions and brokerage fees + patents, trademarks, copyrights and franchises expenses + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water and electricity + freight charges and cost of transport contract work (including travelling expenses) + charter hire of transport equipment + postal and courier service expenses + service fees for loan of machinery and equipment + payments to outworkers + storage expenses + newspaper / magazines and communications expenses + insurance premiums + business management fee / administration charges paid to related companies + expenses in maintaining representative offices outside Hong Kong + advertisement or promotion expenses + accounting, audit fee and legal fees + other professional services fees + information technology and related services expenses + entertainment expenses + tunnel, bridge and link toll payables, vehicles parking fees and gate charges + port charges + aircraft landing and parking expenses + staff training expenses + other operating expenses (including cleaning expenses, laundry service expenses, recruitment, security service expenses and licence fees, etc)

Operating expenses do not include provision, gain/loss on disposal of fixed assets, bad debts, penalty, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and taxation payments.

(iii) For information and communications, financing (except banking), professional and business services sectors : Operating expenses = rent, rates and government rent for land and buildings + property/building management fees + interest expenses, bill interest and loan interest + charges paid to banks, deposit-taking companies and other financial institutions + transport and travelling expenses + newspaper and magazines, and telecommunications expenses + postal and courier service expenses + administration charges paid to related companies + advertisement and business promotion expenses + accounting, audit and legal fees + other professional and business services fees + expenses in maintaining representative offices outside Hong Kong + entertainment expenses + repairs and maintenance + materials and supplies used in business + fuels, water, electricity + commissions and brokerage fees + rentals for hiring machinery, equipment and vehicles + royalty payments for the use of patents, trademarks, copyrights and franchises (paid to government and bodies other than government) + payments to local independent artists + payments to artists from places outside Hong Kong + cost of contract work + staff training expenses + expenditure on purchases of computer hardware and peripheral equipment for own use + expenditure on purchases of pre-packaged/customised computer programs, software and databases for own use + expenditure on repairs and maintenance of IT equipment + expenses on other IT related services + other operating expenses.

(iv) For insurance industry : Operating expenses = = rent, rates and government rent for land and buildings + property/building management fees + interest expenses, bill interest and loan interest + charges paid to banks, deposit-taking companies and other financial institutions + transport and travelling expenses + newspaper and magazines, and telecommunications expenses + postal and courier service expenses + administration charges paid to related companies + advertisement and business promotion expenses + accounting, audit and legal fees + other professional and business services fees + repairs and maintenance + materials and supplies used in business + fuels, water, electricity + claims-handling expenses (for insurance underwriting only) + staff training expenses + expenditure on purchases of computer hardware and peripheral equipment for own use + expenditure on purchases of pre-packaged/customised computer programs, software and databases for own use + expenditure on repairs and maintenance of IT equipment + expenses on other IT related services + other operating expenses
Other business receipts
(i) For architectural, surveying and engineering services : Other business receipts = other service income + rental income from letting/subletting land and buildings + royalty receipts from patents, trademarks, copyrights and franchises + interest income + dividend income + receipts from other sources (excluding any insurance claims, gain/loss on disposal of fixed assets, gain/loss from trading of financial assets). (ii) For construction sector : Other business receipts = other service income + rental income from letting/subletting land and buildings + interest income + dividend income + receipts from other sources (excluding any insurance claims, gain/loss on disposal of fixed assets, gain/loss from trading of financial assets). (iii) For real estate activities : Other business receipts = other service income + royalty receipts from patents, trademarks, copyrights and franchises + interest income + dividend income + receipts from other sources (excluding any insurance claims, gain/loss on disposal of fixed assets, gain/loss from trading of financial assets).
Other receipts
Other receipts = Rental income + Income from other sources
Other transportation support activities
Other transportation support activities include air, sea and land cargo forwarding agents, establishments engaged in packing and crating of goods for transportation, establishments providing cargo surveying services connected with transportation as well as shipbrokers.

Ship repairing establishments (which are classified under the manufacturing sector), ship chandlers (which are classified under the import/export, wholesale and retail trades) and ship surveying establishments (which are classified under the professional, scientific and technical activities sector) are not included in transportation, storage and courier services sector.
Purchases of materials, supplies and industrial work/services
Purchases of materials, supplies and industrial work/services = Purchases of fuels + Purchases of electricity + Purchases of water + Value of all other purchases of materials/supplies for production and business operation + Payments for sub-contract work + Payments for repair and maintenance services
Real estate development project
A real estate development project is concerned with the development of land and/or redevelopment of existing premises into a new form of property for sale or lease. A development project is not regarded as active if the works that have been initiated relate only to pre-construction preparation.
Regional headquarters
A regional headquarters is an office that has managerial control over offices in the region (i.e. Hong Kong plus one or more other places) on behalf of its parent company located outside Hong Kong.
Regional office
A regional office is an office that coordinates offices and/or operations in the region (i.e. Hong Kong plus one or more other places) on behalf of its parent company located outside Hong Kong.
Sales and other receipts
For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
(i) Sales and other receipts (for import/export, wholesale and retail trades)
= value of sales of goods + receipts for services rendered + rental income from letting/subletting land and premises + income from other sources

(ii) Sales and other receipts (for accommodation and food services)
= sales of food, beverages and other goods + room sales and receipts for services rendered + rental income from letting/subletting land and premises + income from other sources
Sales of goods, industrial work and industrial services
Sales of goods, industrial work and industrial services = Value of all sales of goods produced + Machinery produced for own use + Value of resales of goods in same condition as purchased + Receipts for industrial work and industrial services rendered to other establishments.
Service activities incidental to air transportation
Service activities incidental to air transportation include operation of airway terminal facilities, airport and air-traffic-control activities, and ground service activities on airfields etc.
Service activities incidental to land transportation and other land transport services
Service activities incidental to land transportation and other land transport services include car park operation, vehicular tunnel, bridge and highway operators as well as vehicles towing.
Service activities incidental to water transportation
Service activities incidental to water transportation include container terminal and marine cargo terminal operators, mid-stream operation, port facilities operators, container back-up activities (including container freight stations, container yards, container leasing, vanning and devanning) as well as pilotage services.
Service domain
A service domain differs from a service industry in that it comprises those economic activities which straddle different industries but are somehow related to a common theme.  It may include all activities carried out by all establishments in a service industry that is closely related to the domain. For a service industry that is less closely related, however, only a portion of the establishments in the industry or even only part of the economic activities of the establishments is related to the domain. Taking tourism domain as an example, it includes all services of all hotels and travel agents; and some (those involving visitors as customers) but not all of the services of restaurants, retailers and transport operators.
Total project expenses
Total project expenses = Payments to contractors + Building materials and fittings supplied outside the contract sum + Architectural design and technical consultancy fees + Interest payments to finance real estate development projects + Other project expenses
Total receipts
(i) For architectural, surveying and engineering services : Total receipts = Service income + Other business receipts (ii) For construction sector : Total receipts = Gross value of construction works performed + Other business receipts (iii) For real estate activities : Total receipts = Gross margin of real estate development projects + Service and rental income + Other business receipts
Total value of purchases of goods for sale
For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
(i) Total value of purchases of goods for sale (for import/export, wholesale and retail trades) excludes purchases of goods for offshore trading

(ii) Total value of purchases of goods for sale (for accommodation and food services)
= value of purchases of food + value of purchases of beverages + value of purchases of other goods for sale.
Value accrued to project during reporting period
Value accrued to project during reporting period
= { [ (P1 - L1) + (P2 - L2) ] / 2 } x (C2 - C1), where P = market value of the property as if completed; L = market value of the underlying land lot; C = percentage of project completion; 1 = the beginning of reporting period; 2 = the end of the reporting period.
Value added
(i) For the Industry Section of Transportation, Storage and Courier Services : Value added = business receipts and other income – income from other sources – operating expenses + interest payments + payments to outworkers; (ii) For information and communications Industry : Value added = business receipts and other income (excluding interest income, dividends, gain/loss from trading of financial assets and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments); (iii) For financing (except banking) industry : (a) Value added (except investment and holding companies, financial leasing, and credit granting (except financial leasing)) = business receipts and other income (excluding interest income, dividends, gain/loss from trading of financial assets and income from other sources) – operating expenses (excluding interest payments), and (b) Value added (financial leasing and credit granting (except financial leasing)) = business receipts and other income (excluding dividends, gain/loss from trading of financial assets and income from other sources) – operating expenses; (iv) For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) : Value added = business receipts and other income (excluding interest income, dividends, gain/loss from trading of financial assets, government subvention and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments); (v) For travel agency, reservation service and related activities : Value added = business receipts and other income (excluding interest income and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments); (vi) For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services : Value added = sales and other receipts – income from other sources – total value of purchases of goods for sale – operating expenses + interest payments + changes in stocks; (vii) For architectural, surveying and engineering services : Value added = Total receipts (excluding interest income, dividend income and receipts from other sources) – Consumption of materials and supplies; fuels, electricity and water, and maintenance services – Architectural, surveying and engineering design and consultancy fees – Miscellaneous operating expenses (excluding interest payments) (viii) For construction sector : Value added = Total receipts (excluding interest income, dividend income and receipts from other sources) – Payment for sub-contract works rendered by fee sub-contractors – Consumption of materials and supplies; fuels, electricity and water, and maintenance services – Miscellaneous operating expenses (excluding interest payments) (ix) For real estate activities : Value added = Total receipts (excluding interest income, dividend income and receipts from other sources) – Consumption of materials and supplies; fuels, electricity and water, and maintenance services – Miscellaneous operating expenses + Interest payments apart from those for financing real estate development projects
Value indices
Retail sales and restaurant receipts :
Value indices measure the changes in value terms
Volume indices
Retail sales and restaurant receipts :
Volume indices are derived from the value indices by adjusting for price changes.