UK economic forecasts called into question as ONS data reliability falters

The credibility of UK economic data has been compromised following alarming concerns raised by senior officials at the Office for Budget Responsibility (OBR) and the Bank of England regarding the Office for National Statistics (ONS). Richard Hughes highlighted the challenges in accurately assessing the economy due to diminished response rates, dropping from 50% to just 12.7% for the ONS's labour force survey. A government investigation into the ONS's performance has been initiated, while confidence in other metrics like GDP and trade has also slipped, prompting significant delays in data publication.

"Trying to get a clear read on the UK economy from current ONS data is very difficult," warned Richard Hughes, chairman of the OBR.

Confidence in key economic metrics, including GDP and inflation, has waned amid concerns over the ONS's data quality and significant delays in publications.

Read at Business Matters