Natural Resource Indicators (NRI)

Detailed information for fourth quarter 2023

The Natural Resource Indicators (NRI) provide timely information which facilitates ongoing monitoring and analysis of the economic contribution of the natural resources sector in Canada. This sector is split between four subsectors; energy, minerals and mining, forestry, and hunting, fishing and water. A downstream natural resources sector is also measured.

Data release - March 25, 2024

• Description
• Data sources and methodology
• Data accuracy

Description

The Natural Resource Indicators (NRI) provide timely quarterly information which facilitates ongoing monitoring and analysis of the natural resources sector in Canada. The NRI are an extension to the Natural Resources Satellite Account (NRSA)

The NRI are available about 90 days after the reference quarter. The statistical tables include data on the Gross Domestic Product (GDP) expressed in both nominal and real (constant 2012) dollars, at basic prices. As well as data on output, international trade, and jobs. A downstream natural resources sector is also measured, consisting of downstream forestry and downstream mineral and mining. Data has been seasonally adjusted.

The NRI can be used to assess the current economic state of the natural resources sector in Canada, to analyse developments in terms of trends, and to support policy and strategic decisions.

Collection period: Three months after the reference quarter

Subjects

• Economic accounts
• Energy
• Environmental and resource accounts
• Gross domestic product
• Natural resources

Data sources and methodology

Target population

The Natural Resource Indicators (NRI) covers the economic activity of the natural resources sector in Canada. This includes products and services from the following sub-sectors: forestry, minerals and mining, energy, and hunting, fishing and water.

The NRSA defines natural resource activities as those which result in goods and services originating from naturally-occurring assets used in economic activity. These assets comprise mineral and energy resources, water, as well as natural timber, aquatic, and other natural biological resources, and may be renewable or non-renewable. As per international standards, they do not include intensively cultivated biological resources such as agricultural crops. To provide a more complete measure of the economic importance of the natural resource products, the services required in the extraction as well as the initial processing of natural resource inputs are included. The activities related to the production of natural resource products constitute the scope of production for the NRSA.

In essence, the preceding definition splits the scope of natural resource activity into three processes: the extraction of the natural resource inputs, the services required to undertake this extraction (such as transportation, distribution and scientific services), and the initial processing of the resulting natural resource products.

The NRSA further breaks the sector down into 4 sub-sectors, namely:
• energy sub-sector;
• forest sub-sector;
• mineral and mining sub-sector and;
• hunting, fishing and water sub-sector.

Although not part of the core account, natural resources have important downstream effects on other sectors. These products fall outside of the definition of the natural resources sector but are nonetheless important in understanding the role of natural resources in the Canadian economy. They include such items as iron pipes, copper and aluminium tubing, cutlery, wood and kitchen cabinets. Measurements have been made for these activities which are presented in a downstream supplement to the NRSA account. In general, secondary production uses a large portion of primary manufactured products as inputs. These secondary products are then used in the production processes of tertiary products.

The downstream sector is further broken down into 2 sub-sectors, namely:
• forestry downstream sub-sector;
• mineral and mining downstream sub-sector;
• For more information on downstream products, visit: https://www150.statcan.gc.ca/n1/pub/13-604-m/2017086/tbl/tbl_02-eng.htm.

Instrument design

This methodology does not apply.

Sampling

This methodology does not apply.

Data sources

Data are extracted from administrative files and derived from other Statistics Canada surveys and/or other sources.

There are several main data sources for the Natural Resource Indicators (NRI), all originating from Statistics Canada. The Natural Resources Satellite Account (NRSA) provides annual benchmark totals, in current dollars. The NRSA is an annual product which was first published for reference year 2007.

Annual NRSA estimates are benchmarked to annual Supply and Use tables (SUT) when available. Annual levels for employment are calculated using data from the Labour Productivity Database. For years in which supply and use tables are not available, the NRI are based on quarterly estimates of various indicators.

Quarterly indicators for natural resources supply are based on selected components of consumer spending from the National Economic Accounts and on GDP for selected industries from the measures of monthly GDP by industry accounts. The quarterly natural resources employment data are based on the Survey of Employment, Payroll and Hours. Various other sources are also used, such as crude oil and natural gas surveys, international trade data, etc.

Error detection

This methodology type does not apply to this statistical program.

Imputation

This methodology type does not apply to this statistical program.

Estimation

The indicators of output, real and nominal GDP, international trade and employment are benchmarked to the Natural Resources Satellite Account (NRSA) levels and are estimated for the years following the benchmarks. Benchmarks are incorporated annually.

The Natural Resource Indicators (NRI) use results from Statistics Canada's supply and use tables (SUT), which are based on quarterly and annual surveys of industries and their revenues (production). For periods not covered by the most recent supply and use data, the indicators are projected on the basis of: i) industry-specific production figures (GDP); ii) results of selected employment surveys; iii) selected components of consumer spending from the National Economic Accounts; iv) international trade data from the National Economic Accounts; v) Manufacturing and Logging Surveys; vi) Crude Oil and Natural Gas Surveys; vii) Raw Materials Price Index (RMPI) and Industrial Product Price Index (IPPI).

The NRI employment estimates are benchmarked to the NRSA estimates, which in turn are based on measures from the Labour Productivity Accounts. The Labour Force Survey is used primarily to produce control totals, and Survey of Employment, Payroll and Hours is used primarily to compute the industry-by-industry breakdown. The latter seasonally adjusted data are also used to project the quarterly estimates on a current basis, which estimates direct employment.

Similarly, current dollar GDP estimates are based on NRSA annual benchmarks. Quarterly movements and non-benchmark year estimates are calculated using gross domestic product by industry at basic prices. The benchmarked current dollar GDP estimates are deflated using components from the Raw Materials Price Index, Industrial Products Price Index, Consumer Price Index and National Economic Accounts data.

Quality evaluation

The Natural Resource Indicators are based on a wide array of related and comparable data. Supply estimates generally follow the trends of the output measures for industries in the supply and use system and the GDP by industry accounts.

Employment and constant dollar GDP in the NRI are comparable to Canadian Productivity Account and GDP by industry data. The NRI, however, only include the employment or production that is attributable to natural resources.

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

Revisions

The NRI revision policy follows a structured approach of revisions that is aligned with the Canadian System of Macroeconomic Accounts (CSMA) as well as regular benchmarking to new Natural Resources Satellite Accounts (NRSAs) estimates. The revision policy serves to improve the reliability and accuracy of the NRI time series estimates. It is adapted from the policy followed for the CSMA. The data are not normally revised again except when historical revisions are carried out.

These revisions allow for newly published supply and use tables (SUTs) to be incorporated into the time series. The NRI estimates will be revised according to revisions in the NRSA.

Revisions to the NRI, within the current reference year, are open for all quarters through the first quarter of the following year in order to incorporate additional data as it becomes available. These revisions are carried out in order to incorporate the most recent data on gross domestic product and employment for natural resources.

Seasonal Adjustment

The natural resources sector is influenced by large seasonal fluctuations exhibiting similar patterns from one year to the next. For the convenience of users, these regular variations are removed, through a statistical technique known as seasonal adjustment, to help isolate underlying trends.

In practice, only seasonally adjusted indicators are chosen when deriving quarterly movements. As such, all estimates from the NRI can be considered seasonally adjusted. Raw estimates are not calculated.

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.