Input-Output
Accounting framework for all transactions in the UK
The Input-Output (I-O) framework breaks the economy down to display transactions of all goods and services between industries and final consumers in the UK for one year. Information is presented in two key products: Annual Input-Output Supply and Use Tables (I-O SUTs), and Input-Output Analytical Tables (I-O ATs).
I-O Supply and Use Tables The I-O SUTs show the whole economy by 123 industries (e.g. motor vehicles industry) and 123 products (e.g. sports goods). The tables show links between components of gross value added, industry inputs and outputs, product supply and demand. The I-O SUTs link different sectors of the economy (for example public corporations) together with detail of imports and exports of goods and services, government expenditure, household expenditure and capital investment.
Producing I-O SUTs allows an examination of consistency and coherency of National Accounts components within a single detailed framework and, by calculating Gross Value Added (GVA) for each industry group, sets the estimate of annual Gross Domestic Product (GDP). GVA measures the contribution to GDP made by an individual producer, industry or sector.
I-O Analytical Tables I-O ATs are compiled from I-O SUTs data and other additional sources. These tables contain symmetric (product by product) tables, Leontief Inverse and other diagnostic analyses such as output multipliers. I-O ATs show separately the consumption of domestically produced and imported goods and services, providing a theoretical framework for further structural analysis of the economy, the composition and the effect of changes in final demand on the economy. The I-O ATs are normally produced every five years, the latest cover the year 1995.
Importance of Input-Output work Since 1992, ONS has used the I-O process to set a single estimate of annual GDP. This is achieved by reconciling various sources of data used in compiling the income, production and expenditure measures of GDP. The I-O work also plays a central role feeding into many key ONS items such as chain-linking the production measure of GDP, Producer Price Indices, Regional Accounts and Environmental Accounts.
Using the I-O SUTs as a time series from the year 1992, various articles have been produced examining single issues / areas of economic interest. These include:
- The UK economy - Analyses at a glance - Export shares of goods and services - Import penetration of goods and services - Net trade in goods and services - Information and communication technologies (ICT) - Creative sector - Food sector - Concentration ratios for businesses by industry - Taxes and subsidies recorded within the production boundary - Oil and gas sector - Market sector and non-market sector activity - Revisions Analysis
The tables and associated articles are used by economists for modelling (for example, changes in taxation such as VAT or the impact on government expenditure of the introduction of minimum pay), and by businesses in identifying markets for their products. They are also used by the Bank of England, other government departments and academics in compiling analyses both within and outside government.
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Input-Output Analytical Tables