ONS blasted for politicising GDP figures

Author: Will Roberts
IFAonline | 17 Aug 2011 | 15:05

Categories: Economics / Markets

Topics: Economics| GDP| Office for National Statistics

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The Office for National Statistics (ONS) has been rebuked by its watchdog for publishing growth data last month which “flattered” the national accounts.

Chairman of the UK Statistics Authority Sir Michael Scholar criticised the ONS for estimating "special events" including the royal wedding and warm weather knocked around half a percentage point off economic growth in the three months to June, reports the Telegraph.

In a letter to ONS director Stephen Penneck, Scholar said its supplementary growth data left it open to accusations of political influence.

He said media coverage of the ONS release treated its account as "being politically motivated and providing a series of excuses for the low-growth figures, in support of the coalition government".

Growth in the second quarter was just 0.2%, according to ONS figures. This was in line with economists' expectations but still down on the 0.5% recorded for the first three months of the year.

In its release last month, the ONS said it was difficult to pinpoint an exact cause for the low growth figure but stated ‘special events' such as the royal wedding may have been a factor.

Its reference to the "special events" led some analysts to conclude the UK's growth was higher than the figures suggested.

In a further dressing down for Britain's independent statistician, Scholar told the ONS his organisation has launched an inquiry into the release of misleading construction data last week.

The figures, which the ONS subsequently withdrew, overstated the sector's output.

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