Definition: New orders received index
It is the objective of the new orders received index to show the development of demand for products and services as an indication of future production. It is also suitable to indicate whether the demand originates from the domestic or non-domestic market.
An order is defined as the value of the contract linking a producer and a third party in respect of the provision by the producer of goods and services. The order is accepted if, in the producer’s judgement, there is sufficient evidence for a valid agreement.
New orders refer to goods and services to be provided by the observation unit, including those originating from sub-contractors.
The following items should be deducted from the value of orders:
- VAT and other similar deductible taxes directly linked to turnover,
- all duties and taxes on the goods or services that will be invoiced by the unit,
- reduction in prices, rebates and discounts when they are given at the moment of order as well as the value of packing that is expected to be returned after the delivery.
Orders of previous periods that have been cancelled during the reference period are not to be deducted from the new orders received nor is the index for previous periods revised due to cancellations.
The value of new orders also includes all other charges (transport, packaging, etc.) passed on to the customer, even if these charges will be listed separately in the invoice.
European Union, Commission Regulation (EC) No 1503/2006 of 28 September 2006 implementing and amending Council Regulation (EC) No 1165/98 concerning short-term statistics as regards definitions of variables, list of variables and frequency of data compilation