Stock and Consumption of Fixed Non-residential Capital

Detailed information for 2014

Status:

Active

Frequency:

Annual

Record number:

2820

This program produces annual estimates of gross fixed capital formation (capital investment flows), gross and net capital stocks and depreciation by industry, by aggregate asset type, and by province and territory.

Data release - November 24, 2015

Description

This program produces annual estimates of investment flows, depreciation and capital stocks by industry, and by province and territory. Estimates of net stock and depreciation are calculated using three depreciation methods, geometric, linear and hyperbolic. The estimates are produced for non-residential building, engineering construction, machinery and equipment, and intellectual property products and for 16 aggregate asset types. The estimates are available historically in constant, current and chained (Fisher) dollars.

The principal external clients are:
- Finance Canada uses estimates of investment, stock and deprecation in the equalization payments formula under the Fiscal Arrangements Act. Estimates of investment and depreciation are also used by Finance Canada to create and assess fiscal policy.
- Bank of Canada uses the investment and depreciation estimates in evaluating macroeconomic policy and the impact of fiscal tax policy.
- Industry Canada and Infrastructure Canada uses measures of investment, stocks and depreciation in studies of inter-industry and international competitiveness, in estimating potential output and in determining investment needs by industry.

The principal internal clients are:
- The Canadian System of National Accounts uses the investment prices and depreciation estimates as inputs in Gross Domestic Product and the Input-Output national and provincial tables.
- The capital stock estimates appear in the national balance sheet accounts.
- The investment and stock estimates are also required for the production of the capacity use measures and in the calculation of multi-factor productivity.

Reference period: Calendar year

Subjects

  • Construction
  • Machinery and equipment
  • Non-residential building construction
  • Non-residential engineering construction

Data sources and methodology

Target population

The target population comprises all business, government and non-profit institutions serving households' operating in Canada. Outlays for used Canadian assets are excluded since they constitute a transfer of assets within Canada and have no effect on the aggregates of our domestic inventory. Assets imported from outside Canada are included as they increase our domestic inventory.

Data sources

Data are collected from other Statistics Canada surveys and/or other sources.

Estimates of investment are benchmarked to the Provincial and Territorial Input-Output Accounts (record number 1401), by industry and asset, and to the Provincial and Territorial Gross Domestic Product by Income and by Expenditure Accounts (record number 1902). Data sources include capital expenditure estimates, by industry and asset, from the Capital and Repair Expenditures Survey and prices from Producer Prices Division.

Estimation

The value of capital stock is estimated using the perpetual inventory method (PIM) whereby investment flows are accumulated and depreciated over time, giving rise to a stock of assets. In particular, the PIM uses a time series of investment flows, asset lives and prices, and assumptions regarding methods of depreciation and discard patterns when developing estimates of the capital stock. The essence of the perpetual inventory method is to add investment estimates to the capital stock each year and to subtract depreciation.

Quality evaluation

Data are analyzed for time series consistency, links to current economic events, issues arising from the source data, and respect to coherence. Any irregularities identified are carefully analyzed and any corrections are made before the official release.

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.

Revisions and seasonal adjustment

Estimates are released, annually, in the fall after the release of the Provincial and Territorial Gross Domestic Product by Income and by Expenditure Accounts. The release comprises revisions to the two previous years. Statistical revisions are carried out in order to incorporate the most recent information from surveys, taxation statistics, public accounts, etc., as well as from the annual benchmarking process of the Input-Output Accounts and the Provincial and Territorial Gross Domestic Product by Income and by Expenditure Accounts.

Data accuracy

No direct measures of the margin of error in the estimates can be calculated. The quality of the estimates can be inferred from analysis of revisions and from a subjective assessment of the data sources and methodology used in the preparation of the estimates.

Documentation

Date modified: