Commercial and Industrial Machinery and Equipment Rental and Leasing Services Price Index (CIMERLSPI)

Detailed information for third quarter 2016

This survey collects information needed to produce indexes that measure the monthly changes in the prices for the Commercial and Industrial Machinery and Equipment Rental and Leasing Industry. The estimates are produced on a quarterly basis.

Data release - January 26, 2017

• Questionnaire(s) and reporting guide(s)
• Description
• Data sources and methodology
• Data accuracy

Description

This survey collects information needed to produce indexes that measure the monthly changes in the prices for the Commercial and Industrial Machinery and Equipment Rental and Leasing Industry. The estimates are produced on a quarterly basis.

The CIMERLSPI series is a useful indicator of the industry's economic activity, and can also prove helpful as a tool for performance evaluation, cost monitoring, contract assessment, and benchmark comparisons. In addition, the indexes are used as price deflators by the Canadian System of National Accounts in order to arrive at estimates of real output for the industry.

Statistical activity

These indexes are a part of the Services Producer Price Index program (SPPI) at Statistics Canada.

The SPPI program develops and produces price indexes for a wide range of business service categories. This initiative fills an important data gap in the area of economic statistics and has resulted in a more comprehensive set of service price indexes. It also allows Statistics Canada to produce more accurate estimates of real value added of the Gross Domestic Product and changes in productivity.

Reference period: The time period for which the CIMERLSPI equals 100; currently this is the year 2007.

Collection period: Data are collected quarterly for monthly prices the quarter following the reference quarter.

Subjects

• Business, consumer and property services
• Prices and price indexes
• Rental and leasing and real estate
• Service price indexes

Data sources and methodology

Target population

The Commercial and Industrial Machinery and Equipment Rental and Leasing survey covers establishments primarily engaged in renting or leasing commercial and industrial machinery and equipment, without operator. The types of firms included in this industry group are generally involved in providing capital or investment-type equipment that clients use in their business operations. They typically serve businesses who are knowledgeable of the products offered and of their usage in the industry.

The target population consists of all statistical establishments classified as belonging to the Commercial and Industrial Machinery and Equipment Rental and Leasing industry group (NAICS 5324) during the reference year, according to the North American Industry Classification System 2007 (NAICS 2007). This industry group contains three industries: Construction, Transportation, Mining and Forestry Equipment Rental and Leasing (NAICS 53241), Office Machinery and Equipment Rental and Leasing (NAICS 53242) and Other Commercial and Industrial Machinery and Equipment Rental and Leasing (NAICS 53249).

• Additional documentation

Instrument design

The Commercial and Industrial Machinery and Equipment Rental and Leasing Services Price Index questionnaire was developed at Statistics Canada and was reviewed and tested in the field in both official languages by the Questionnaire Design Resource Centre. In the course of developing the questionnaire, Statistics Canada consulted numerous respondents and experts in the commercial and industrial machinery and equipment rental and leasing services industry.

Sampling

This is a sample survey with a longitudinal design.

Data sources

Responding to this survey is mandatory.

Data are collected directly from survey respondents.

Following sample selection, new survey participants (respondents) are introduced to the survey through telephone calls. During this initial phase of data collection, respondents are guided through the process of selecting representative products for which prices will be monitored. This process typically spans several collection cycles until respondents become conversant with the survey.

In subsequent cycles, monthly data are collected on a quarterly basis via electronic questionnaire and by mail out, mail back paper questionnaires, while telephone communication (computer-assisted telephone interviewing) is used for non-response and data follow-up. Several follow-up contacts can be made including sending out a reminder fax or letter in order to collect data.

Information about the time it takes respondents to complete the survey questionnaire is collected and monitored closely. Currently, it takes respondents an average of 15 minutes to complete the survey.

View the Questionnaire(s) and reporting guide(s) .

Error detection

Error detection is conducted at the time of data collection and also during post collection processing, using a set of systematized error detection procedures to identify outliers and possible reporting anomalies. Records that fail these edits are reviewed for editing and correction when necessary or edit failure may trigger a follow-up with the respondent.

Time and effort is devoted to keeping the specifications constant such that only the pure changes in price are tracked. Some information are also collected in order to ensure, as much as possible, that the collected data correspond to the same specifications over time. This constant quality price then feeds into the Canadian System of Macroeconomic Accounts' (CSMA) estimates of constant dollar GDP.

Imputation

Missing data are generally estimated by a systematized imputation process. In any given period, price data may not be available for estimation. In such cases, missing data are imputed using the average price movement of remaining units within the same stratum (overall mean or targeted mean imputation method).

Estimation

Prices
The prices collected for the CIMERLSPI represent the contract prices charged for representative items. Each firm is asked to provide three representative lease or rental contracts and changes in price are tracked over time. The reason for the price change is recorded in one or more of the following terms: market conditions, inflation, exchange rates, or a change in equipment, contract or another aspect of service provided.

Weights
The company weights from Statistics Canada's Business Register, represent the revenue of each establishment at the time of sample selection, which are price updated every collection period. The sub-industry weights are based on aggregate operating income from the Annual Survey of Service Industries: Commercial and Industrial Machinery Equipment Rental and Leasing and are used at the final level of aggregation.

Quality evaluation

An in-depth assessment of quality is conducted prior to the dissemination of estimates. This assessment is based on two key elements of quality (accuracy and coherence); as defined in Statistics Canada's guidelines for the validation of statistical outputs.

The survey's data collection strategy is designed to ensure that targeted response rates are met every cycle. Analysts pay close attention to this metric and react appropriately to ensure that the survey's coverage of the industry is thorough. Particular attention is also given to ensuring that sampled products or services are representative of actual transactions happening in the market place. These two activities, fundamental to the overall quality of the estimates, are done consistently.

Analysts also undertake additional validation activities every cycle to ensure the coherence of survey estimates. These include among others activities: analysis of price changes over time (including analysis of trends), at the business/company, industry, subsector and sector levels; certification of key contributors to price change; and confrontation of estimates against other related data sources. Contextual analysis of survey results is also performed in light of prevailing economic conditions.

Engagements with relevant stakeholders are also undertaken periodically. Forums involving other Statistics Canada analysts, industry stakeholders and partners at other national and international statistical agencies provide valuable insights that inform the development and research agenda of the program.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Collected data are converted to price indexes and data are released as such, so that it is not possible to identify the suppliers of raw prices.

Revisions and seasonal adjustment

The data are not seasonally adjusted. There will be one revision period, plus an annual revision released with second quarter data of the following reference year.

Data accuracy

The statistical accuracy of this index depends on price and weight data obtained from sample surveys. Each type of input data is subject to its own errors. Processing procedures for editing and imputation are in place to ensure the quality of data. Consequently, the aggregate indexes at all levels are considered to be statistically reliable.

• Additional documentation