abstract:Intermediate consumption (also called "intermediate expenditure") is an economic concept used in national accounts, such as the United Nations System of National Accounts (UNSNA), the US National Income and Product Accounts (NIPA) and the European System of Accounts (ESA).
Gross value added is calculated at the level of branches of the economy as the value of output of goods and services less the value of intermediateconsumption.
The indicators of the production of GDP are re-valued at constant prices with the double deflation method where the value added at constant prices is the difference between the value of output and the value of intermediateconsumption at constant prices.
In the SNA output, intermediateconsumption, operating surplus and increase in inventories are calculated, excluding holding gains (losses), which are defined as the value of products created due to changes in prices during the period when the products were held in stocks.