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Monthly international trade in services compilation guide

This article is a guide for users to compile monthly international trade in services estimates.

Released

5/10/2023

Source

International Trade in Goods and Services, Australia, August 2023

Overview

The ABS reviews and makes changes to its Forward Work Program to ensure it continues to appropriately measure the Australian economy, environment, and society. As outlined in the ABS Corporate Plan, the increased appreciation of the value of data is generating significant additional demand for services of the ABS. As the growth in opportunities exceeds the capacity of the ABS, statistical outputs are prioritised.

From September 2023 reference month, International Trade in Services data will no longer be available on a monthly basis. International Trade in Services data will continue to be available in the quarterly Balance of Payments and International Investment Position, Australia publication.

This article is a guide for users to compile monthly international trade in services estimates.

International trade in services, source data and frequency

The measurement of international trade in services is complex due to their intangible and heterogenous nature. Constructing Australia’s international trade in services statistics requires multiple data sources and a series of statistical models.

The ABS models monthly international trade in services statistics from a combination of data from its quarterly Survey of International Trade in Services (SITS) and over 20 different alternative data sources.

Available source data are received at different frequencies, predominantly quarterly. The remaining data are monthly, annual, and bi-annual, and are lagged from the reference period. Monthly international trade in services statistics is generally nowcasted (projected using historical data) due to data availability. Nowcasted estimates may be in place for several months before published statistics are revised with actual input data.

Table 1 provides information on the main data sources used to compile international trade in services statistics, the frequency with which they are received and the lag between publishing the statistics and receiving input data.

Table 1: International trade in services, source data and frequency
Service and input type	Main Data Sources	Frequency of Input Data	Lag to Statistical Reference Period
Manufacturing services	ABS: International Trade in Goods	Monthly	1 Month
Maintenance and repair n.i.e.	ABS: International Trade in Goods	Monthly	Up to 1 Month
Transport	ABS: Survey of International Trade in Service	Quarterly	1 Quarter
	ABS: International Trade in Goods	Monthly	1 Month
	ABS: Overseas Arrivals and Departures	Monthly	1 Month
	Tourism Research Australia: International and National Visitor Survey	Quarterly	1 Quarter
	BITRE: Airline data	Quarterly	1 Quarter
Travel	ABS: Overseas Arrivals and Departures (Home Affairs passenger card data)	Monthly	1 Month
	Tourism Research Australia: International and National Visitor Survey	Quarterly	1 Quarter
	Department of Home Affairs: Student visa numbers	Monthly	Current
	Department of Education, Skills and Employment (DESE): Student fees	Biannual	9 months
	ABS: Survey of International Trade in Services	Quarterly	1 Quarter
Construction	ABS: Survey of International Trade in Services	Quarterly	1 Quarter
Insurance and pension services	APRA: Insurance, reinsurance and superannuation	Various	Up to 3 years
	ATO: Net foreign employment income	Annual	20 months
	ABS: International Trade in Goods	Monthly	1 month
	RBA: Foreign exchange rates	Quarterly	Current
	ABS: Financial Account	Quarterly	1 Quarter
Financial services	ABS: Survey of International Trade in Services	Quarterly	1 Quarter
Financial services	ABS: Survey of International Investment	Quarterly	1 Quarter
Charges for the use of intellectual property n.i.e.	ABS: Survey of International Trade in Services	Quarterly	1 Quarter
Telecommunication, computer and information services	ABS: Survey of International Trade in Services	Quarterly	1 Quarter
Other business services	ABS: Survey of International Trade in Services	Quarterly	1 Quarter
Personal, cultural and recreation services	ABS: Survey of International Trade in Services	Quarterly	1 Quarter
Personal, cultural and recreation services	DESE: Student fees	Biannual	9 months
Government services n.i.e.	ABS: Overseas Arrivals and Departures	Quarterly	1 Quarter
Government services n.i.e.	Various Commonwealth, State and Territory data sources – covering e.g. embassy, diplomatic, peace keeping and defence activities abroad	Various	Various

International trade in services, compilation methods

Tables 2 and 3 provide an overview of the compilation methods used to estimate monthly international trade in services statistics for both credits (exports) and debits (imports).

In addition to the usual compilation methods outlined below, the ABS makes ad-hoc adjustments to categories as required to account for one-off or unusual events that may impact estimates. For example, for the FIFA Women’s World Cup, held in Australia in August 2023, adjustments were made to the credit series for Business and Other personal Travel, Passenger Transport and Charges for the use of intellectual property. These adjustments reflected the increase in spend and activity expected from players, staff, officials, and spectators who travelled to Australia to participate in the event or watch the matches locally and the value of the broadcasting rights for the tournament.

Table 2: International trade in services credits (exports), monthly compilation methods for nowcasting
Service category	Description of category[i]	Data source/s used	Overview of nowcast method
Manufacturing services	The value of manufacturing services completed by Australian residents on physical inputs owned by non-residents, whilst temporarily in Australia.	ABS’ International merchandise trade data.	Calculated as a percentage of the value of commodity: Goods re-exported from Australia after industrial processing (AHECC 98050000) for the reference month.
Maintenance and repair not included elsewhere (n.i.e.).	The value of maintenance and repair services performed by Australian residents on goods that are owned by non-residents, whilst temporarily in Australia.	ABS’ International merchandise trade data.	Calculated as the value of the non-merchandise commodity: Value of repairs, alteration or renovations of goods re-exported from Australia (AHECC 99012020) for the reference month.
Transportation
Freight	The value of the carriage of objects (not passengers) on an Australian resident carrier, where non-residents have paid the freight costs.	ABS’ Survey of International Trade in Services (SITS) data for transport freight, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website.	Calculated as the previous quarter’s value for transportation freight, multiplied by the four-year average historical quarterly movement, divided by three.
Passenger	The value of tickets for non-resident passengers on Australian resident airlines, uplifted in the given month (i.e., does not necessarily equate to month of ticket sale).	ABS’ Survey of International Trade in Services (SITS) data for transport passenger, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website. ABS’ Overseas Arrivals and Departures (OADs) data, available on the ABS website.	Calculated as the previous month’s value, multiplied by the growth rate (percentage change) in short-term visitor numbers, sourced from OADs. For the first month of a new quarter, the value is calculated by dividing the previous quarters’ value (for transport passenger) by three; then multiplying it by the OAD growth rate. A coverage adjustment is applied to account for air direct commission (Agency fees and commissions from non-residents). These adjustments are derived from unpublished SITS data.
Other	The value of transport related services not included elsewhere. These include activities such as warehousing, fees for loading or unloading cargo and airport or harbour fees, paid by non-resident transport operators to Australian residents.	ABS’ Survey of International Trade in Services (SITS) data for other transport services, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website.	Calculated from the previous quarter’s SITS value for other transport services, multiplied by the four-year average historical quarterly movement, divided by three.
Postal and courier	The value of the pick-up, transport, and delivery by Australian residents of letters, newspapers, other printed materials, parcels, and packages, including door-to-door and express delivery, owned by non-residents.	ABS’ Survey of International Trade in Services (SITS) data for postal and courier transport services, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website.	Calculated from the previous quarter’s SITS value for postal and courier transport, multiplied by the four-year average historical quarterly movement, divided by three.
Travel
Business	The value of purchases of goods and services by a non-resident traveller, in Australia, who has identified as travelling for business related travel.	ABS’ Overseas Arrivals and Departures (OADs) data, available on the ABS website. Australian Government International Visitor’s Survey (IVS) data available on the Tourism Research Australia website.	Calculated as the number of business travellers in the reference month multiplied by the average spend per business traveller. The number of business travellers is sourced from the ABS’ Overseas Arrivals and Departures (OADs) as the number of short-term travellers arriving for business (including for conventions and conferences, business, and employment). Prior to the June quarter 2020, the average spend per business traveller was calculated from the quarterly business and employment categories of the International Visitors’ Survey (IVS) conducted by Tourism Research Australia. Due to impacts of COVID-19 this value has been temporarily replaced by an estimate calculated by applying a three-year average monthly movement. A coverage adjustment is applied to account for non-resident crew in Australia. This adjustment is derived from unpublished SITS data.
Education	The value of purchases of goods and services acquired by a non-resident in Australia on a primary Education visa.	Australian Government international student fee data available on the Department of Education website. Australian Government study visa data available on the Department of Home Affairs website. Australian Government international Visitor’s Survey (IVS) data available on the Tourism Research Australia website.	Calculated as the number of international students in Australia in the reference month multiplied by their average expenditure. The number of students for each reference month (total number of primary student visas) is sourced from the Department of Home Affairs visa data. Student expenditure includes the cost of education fees and the expenditure on goods and services while in Australia: International student fee data is produced biannually by the Australian Department of Education. This data is divided by six to obtain a monthly value. Prior to the June quarter 2020, expenditure on goods and services was calculated from the quarterly International Visitors’ Survey (IVS) conducted by Tourism Research Australia. Due to impacts of COVID-19 this figure has been temporarily replaced by an estimate based on historical averages.
Other personal	The value of purchases of goods and services acquired by a person during a visit outside their own country to Australia whose main reason for travel is neither business nor education.	ABS’ Overseas Arrivals and Departures (OADs) data, available on the ABS website. International Visitor’s Survey (IVS) data available on the Tourism Research Australia website.	Calculated as the number of short-term non-student and non-business travellers in the reference month multiplied by the average spend per personal traveller. The number of travellers is sourced from the ABS’ Overseas Arrivals and Departures (OADs) data as the number of short-term travellers in Australia for other personal reasons (including holiday, visiting friends/relatives, and other and not stated). Prior to the June quarter 2020, the average spend per personal traveller was calculated from the quarterly other personal category of the International Visitors’ Survey (IVS) conducted by Tourism Research Australia. Due to impacts of COVID-19 this figure has been temporarily replaced by an estimate calculated by the ABS based on a three-year average historical monthly movement.
Other Services	The aggregate value for the following services categories: Construction Insurance and pension services Financial services Charges for the use of intellectual property not included elsewhere Telecommunications, computer, and information services Other business services Personal, cultural, and recreational services Government goods and services not included elsewhere	ABS’ Survey of International Trade in Services (SITS) data for each of the subcategories, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website.	Calculated from the previous quarter’s total Other Services value, multiplied by the four-year average historical quarterly movement, divided by three. Small adjustments are applied to the subcategories as required. These coverage adjustments account for a very small proportion of the total series.

[i] Further information on the categories of international trade in services can be found in: International Trade in Services; Concepts, Sources and Methods.

Table 3: International trade in services debits (imports), monthly compilation methods for nowcasting
Service category	Description of category[i]	Data source/s used	Overview of nowcast method
Manufacturing services	The value of manufacturing services completed by non-residents on physical inputs owned by Australian residents.	ABS’ International merchandise trade data.	Calculated as a percentage of the value of commodity: Goods exported from Australia which are to be re-imported after industrial processing (AHECC 98060000) for the reference month.
Maintenance and repair not included elsewhere (n.i.e.).	The value of maintenance and repair services performed by non-residents on goods that are owned by Australian residents.	ABS’ International merchandise trade data.	Calculated as the value of the following non-merchandise commodities: Value of repair of goods repaired overseas (HTSIC 9999301820); and Goods, as prescribed by by-law or covered by a Free Trade Agreement, exported for repair, renovation, alteration, or similar process (HTSIC 9999332049).
Transportation
Freight	The value of the carriage of objects (not passengers), on non-resident owned vessels and airplanes, where Australian residents have paid for the freight.	ABS’ International merchandise trade data.	Calculated as the difference between international merchandise trade import’s data including cost, insurance, and freight (CIF) and free on board (FOB) values. Adjustments are made to the total CIF-FOB value to remove: the resident-to-resident (out of scope) value for freight; and the insurance component of the CIF, calculated as a fixed proportion of the total CIF-FOB value.
Passenger	The value of tickets for Australian resident passengers on non-resident airlines, uplifted in the given month (i.e., does not necessarily equate to month of ticket sale).	ABS’ Survey of International Trade in Services (SITS) data for transport passenger services published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website. ABS’ Overseas Arrivals and Departures (OADs) data, available on the ABS website.	Calculated as the previous month’s value, multiplied by the growth rate (percentage change) in short-term resident traveller numbers, sourced from OADs. For the first month of a new quarter, the value is calculated by dividing the previous quarters’ value (for transport passenger) by three; then multiplying it by the OAD growth rate.
Other	The value of transport related services not included elsewhere. These include activities such as warehousing, fees for loading or unloading cargo and airport or harbour fees, paid by Australian resident transport operators to non-residents.	ABS’ Survey of International Trade in Services (SITS) data for other transport services, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website.	Calculated from the previous quarter’s value for other transport services, multiplied by the four-year average historical quarterly movement, divided by three.
Postal and courier	The value of the pick-up, transport, and delivery by non-residents; of letters, newspapers, other printed materials, parcels, and packages, owned by Australian residents.	ABS’ Survey of International Trade in Services (SITS) data for other transport services, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website.	Calculated from the previous quarter’s value for postal and courier transport, multiplied by the four-year average historical quarterly movement, divided by three.
Travel The travel debits (imports) service category undergoes a benchmarking process each year to re-calculate the total level of spend. It is calculated by multiplying the ABS’ Overseas Arrivals and Departures (OADs) short-term resident traveller numbers by Tourism Research Australia’s National Visitor’s Survey (NVS) outbound traveller spending data (each available on the respective websites). The next annual benchmark will be implemented in early 2024 and will be advertised in the quarterly Balance of Payments and International Investment Position publication.
Business	The value of purchases of goods and services acquired by an Australian resident during a visit outside their own country, whose main reason for travel is business.	Reserve Bank of Australia (RBA) card payments data, available on the RBA website.	Calculated as the previous month’s value, multiplied by the growth rate (percentage change) in RBA device present commercial transaction data. A coverage adjustment is applied to account for Australian crew outside of Australia, based on unpublished SITS data.
Education	The value of purchases of goods and services acquired by an Australian resident during a visit outside their own country whose main reason for travel is education as well as the cost of any education purchased from another country.	ABS’ Overseas Arrivals and Departures (OADs) data, available on the ABS website.	Calculated by multiplying the other personal travel debits value by the proportion that education related travellers make up of total short term resident returns.
Other personal	The value of purchases of goods and services acquired by an Australian resident during a visit outside their own country whose main reason for travel is neither business nor education.	Reserve Bank of Australia (RBA) card payments data, available on the RBA website.	Calculated as the previous month’s value, multiplied by the growth rate (percentage change) in RBA device present personal transaction data.
Other Services	This category is made up of the following subcategories: Construction Insurance and pension services Financial services Charges for the use of intellectual property not included elsewhere Telecommunications, computer, and information services Other business services Personal, cultural, and recreational services Government goods and services not included elsewhere	ABS’ Survey of International Trade in Services (SITS) data for each of the subcategories, published in the ABS’ quarterly Balance of Payments and International Investment Position publication, available on the ABS website.	Calculated from the previous quarter’s total Other Services value, multiplied by the four-year average historical quarterly movement, divided by three.