Stock and Consumption of Fixed Non-residential Capital (SCFNRC)

Detailed information for 2018

Status:

Active

Frequency:

Annual

Record number:

2820

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

Data release - November 19, 2019

Description

This program produces annual estimates of investment flows, depreciation and capital stock 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 buildings, 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.

Principal external clients:
- The Department of Finance Canada uses estimates of investment, stock and deprecation in the equalization payments formula under the Federal-Provincial Fiscal Arrangements Act. Estimates of investment and depreciation are also used by the Department of Finance Canada to create and assess fiscal policies.
- The Bank of Canada uses the investment and depreciation estimates in evaluating macroeconomic policy and the impact of fiscal policies.
- Innovation, Science and Economic Development Canada and Infrastructure Canada use measures of investment, stock and depreciation in studies of inter-industry and international competitiveness, in estimating potential output and in determining investment needs by industry.

Principal internal clients:
- The Canadian System of National Accounts uses the investment price and depreciation estimates as inputs in gross domestic product and in the national and provincial input-output 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 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.

Instrument design

This methodology does not apply.

Sampling

This methodology does not apply.

Data sources

Data collection for this reference period: Fall

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

Estimates of investment are benchmarked to the Supply, Use and Input-Output Tables (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 Annual Capital and Repair Expenditures Survey: Actual, Preliminary Actual and Intentions (record number 2803) and prices from Producer Prices Division.

Error detection

This methodology does not apply.

Imputation

This methodology does not apply.

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, 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 non-residential capital stock. Essentially, PIM consist of adding investment estimates to the capital stock each year and subtracting depreciation.

Quality evaluation

Data are analyzed for time series consistency, links to current economic events, issues arising from the source data, and 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 that 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

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