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

Detailed information for first quarter 2017

Status:

Active

Frequency:

Quarterly

Record number:

5137

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 - July 28, 2017

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

This index is part of the Services Producer Price Index program (SPPI) at Statistics Canada.

The SPPI program develops and produces price indexes for a number 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. These indexes allow Statistics Canada to produce more accurate estimates of real-value added (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).

Instrument design

The Commercial and Industrial Machinery and Equipment Rental and Leasing Services Price Index (CIMERLSPI) questionnaire was developed at Statistics Canada and was reviewed and tested in the field in both official languages by the Questionnaire Design Resource Centre (QDRC). 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 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 [Frequency: 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 [duration: 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 is 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 Gross Domestic Product (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.

Linking
With the introduction of a new basket, historical estimates are linked to the new basket by maintaining the same historical monthly changes. This is done by calculating a link factor for each index series as the ratio of the new index series to the old index series in the overlapping period. This link factor is then applied to the old index series to bring it up or down to the level of the new index series.

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 take the appropriate measures to ensure that the survey's coverage is thorough. Particular attention is also given to ensuring that sampled products or services are representative of actual transactions taking place in the market. 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 activities include the analysis of price changes period-over-period and the analysis of trends at the business/company, industry, subsector and sector levels, the certification of key contributors to price change as well as the 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 insight into 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 a price index 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. Also, sampling errors occur when observations are made only on a sample and not on the entire population.

All other errors that arise from the various survey phases are referred to as non-sampling errors. For example, non-sampling errors can occur when a respondent provides incorrect information or does not answer certain questions; when a unit in the target population is omitted or covered more than once; when an out of scope unit is included by mistake or when errors occur in data processing, such as coding or capture errors.

The survey uses a methodology and processing procedures to control for sampling and non-sampling errors and reduce their effect on estimates. Consequently, the aggregate indices at all levels are considered to be statistically reliable.

Response rate
The survey achieves about a 80% response rate. A systematized imputation process is used to impute for the non-response portion of the sample, achieving an effective 100% coverage. Non-response bias is also minimized during the same process.

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