What is a group and how does it narrow a division?

A group is the third level of NACE, identified by a three digit numerical code, inside one division. The EUR-Lex summary states that groups are identified by three digits, between divisions with two digits and classes with four digits. A group narrows a division into a smaller field, and it contains the classes that divide that field further. A group heading, with its explanatory note, states the scope of the field. A group does not, on its own, describe a specific activity in the detail that a class note provides.

How is a group code formed?

A group code is formed from the division code by appending one digit after a dot. The manual gives the example of division 20, group 20.5, and class 20.51. The group code 20.5 shows the division 20 and the group digit 5. A class inside the group adds one more digit, so that the class code shows the full path from division to group to class. The background article states the structure in the same terms: a third level consisting of headings identified by a three digit numerical code, called groups. The three digits are the two division digits plus the group digit, written with a dot after the second digit.

The dot is part of the NACE code form. The manual states that NACE places a dot between the first two digits, at division level, and the last two digits, at group and class levels, in order to distinguish the NACE coding from the coding used in the International Standard Industrial Classification of All Economic Activities, as far as possible. A code written without the dot, or with the dot in a different place, is not the NACE code form, and it must be checked against the structure table before it is used. Datasets sometimes store codes without dots or with different separators, and the structure table is the check that restores the level boundaries.

Code	Level	How the code is built
20	Division	Two digits
20.5	Group	Division code, dot, one group digit
20.51	Class	Group code, one class digit
20.59	Class in the same group	Same group, different class digit

What does a group note state?

A group note states the scope of the group, in the same form as notes at other levels: a description of what the group includes, and exclusions that point to other groups or classes. The manual states that the content and scope of each position is defined through detailed explanatory notes, which highlight boundary issues by providing examples of activities that may appear similar but are classified elsewhere. A group note therefore does two jobs. It states the field covered by the group, and it states the boundary with neighbouring groups, so that an activity near the boundary can be placed by reading the note rather than by guessing from the heading.

An example from the manual structure shows the pattern at group level. Group 01.1 for growing of non perennial crops states that the group includes the growing of non perennial crops, in other words plants that do not last for more than two growing seasons, and that growing of those plants for seed production is further included. The note defines the term used in the heading, in this case non perennial, and it states an inclusion that a reader might otherwise miss. The classes inside the group then divide the field by crop type, with their own notes stating the inclusions and exclusions for each class. The group note sets the field. The class notes divide it.

When does a group have the same heading as its division?

A group has the same heading as its division when the division consists of a single group, or when the division is not split at all. The manual states that if a division consists of a single group which is split at class level, the group must have the same heading as the division, with the group code formed by appending a zero to the division code. At class level, none of the headings may be the same as the group heading, because the classes divide the field into detailed content that must be reflected in each class heading. The example given is division 11 for manufacture of beverages, group 11.0 with the same heading, and classes such as 11.01, 11.02 and 11.03 with distinct headings for spirits, wine, and cider and other fermented fruit beverages.

That pattern shows that a repeated heading is not a duplication error. It is the rule for a level that is not divided. The code still shows the level, through the appended zero, and the heading still names the field. A reader who sees the same heading at division and group level must not treat the group as a separate field. The group is the division, presented at the next level of the hierarchy, awaiting division into classes.

What does a group not decide?

A group does not decide the class for an activity, and it does not decide an entry for a business. It is an intermediate level, useful for presenting statistics at a granularity between division and class, and useful as a step in narrowing a search. The class notes inside the group state the detailed distinctions, and the institute or register that holds the record confirms an entry. A group heading read alone can mislead, because the note may exclude an activity that the heading words seem to cover, and may include an activity that the heading words seem to leave out. The note, not the heading, is the definition.

Read the group code to find its division, read the group note to find its scope, and confirm any entry with the national statistical institute or the business register that holds the record.