• Industrial Production Index (IPI) is a comparison of the volume of goods and services produced during a certain period with that of another period. Industrial Production Index is used to study changes in production over short periods, as well as in the System of National Accounts for calculating on a monthly and quarterly basis the macro-indicators, including Gross Domestic Product.
• The calculation of the production index is carried out in four stages. In the first stage, physical volume indices are formed by comparing the output volumes of representative goods, valued at the same prices (average annual prices of the base year) in comparable periods, in natural-physical terms across sub-sectors. In the second stage, aggregation of sub-sector indices is performed to calculate the index for each aggregated industrial sector. In the third stage, the overall physical volume index for industry is calculated similarly by aggregating the indices of the industrial sectors. In the fourth stage, adjustments and additions are made to the physical volume index of industrial production, calculated on the basis of representative goods, taking into account production-related works and services provided by industrial enterprises.
• For industrial products – the Statistical Classification of Industrial Products (a national classification developed based on the international PRODCOM classification) and for industrial activities – the new versions of the Classification of Economic Activities (a national classification developed based on the international NACE and ISIC classifications) are applied.

• To carry out the calculation, all industries are divided into sub-sectors, and each sector, in turn, is subdivided into sub-sectors (at the three-digit level according to ISIC). All industrial sectors are included in the calculation of the index.

• The activity of industrial enterprises is completely based on statistical observation.

• While calculating the industrial production index, it is based on physical data for the types of products produced and is subsequently calculated by aggregating to sectoral and overall industrial indices in stages. During aggregation, the “value added” indicator of the base period is used. If there are significant changes in the structure of a sector, appropriate adjustments are made to the base period weights.
• In the monthly production index, data are obtained from the observation of products produced by small, medium, and large enterprises, while data for micro-enterprises is taken into account only on a quarterly basis.
• The data are reflected in official statistical reports and are submitted in real-time on the website of the State Statistical Committee (www.stat.gov.az) by legal entities whose main activity is industry, regardless of their organizational-legal form or type of ownership.

• For the calculation of indices, the method of aggregating base indices (Laspeyres index) is used.
• Reports are collected from enterprises for the monthly data. In some cases, if report data are missing or not submitted, data from the previous month are used. Automated conditional calculation rules and imputation methods are not applied.
• Seasonal adjustments are made in the sectors of industry – Sections B, C, D, and E.