The Office for National Statistics (ONS) has postponed the release of key retail sales data by two weeks, citing concerns about data quality. This decision has sparked discussions regarding the reliability of the statistics, which are instrumental in shaping government policies that impact a significant portion of the population and are also used by the Bank of England for interest rate decisions.
The ONS, which originally planned to publish the monthly retail sales figures on Friday, will now release them on September 5. These figures are crucial as they reflect consumer spending trends, with increases potentially signaling positive economic growth. The UK government has prioritized economic growth to enhance living standards, making accurate data critical.
The ONS issued an apology for the inconvenience caused by this delay, acknowledging the importance of maintaining data integrity. Recent criticisms directed at the ONS have raised concerns about the overall reliability of its statistics, particularly regarding labor market data.
The Bank of England closely monitors these statistics when determining interest rate adjustments, which can influence borrowing costs and savings rates for consumers. Additionally, the ONS’s inflation and GDP figures underpin many fiscal decisions made by Chancellor Rachel Reeves.
In June, the ONS acknowledged a miscalculation related to the UK’s inflation rate after receiving erroneous road tax data from the Department for Transport. Economists, including Robert Wood from Pantheon Macroeconomics, have expressed doubts about the ONS’s credibility, implying that future data points may be questioned due to past mistakes.
Furthermore, a recent governmental review highlighted persistent issues within the ONS, recommending improvements in planning and decision-making processes. Following these challenges, Sir Robert Chote recently resigned as chair of the UK Statistics Authority, emphasizing the need for new leadership to help restore trust in the agency’s data.
Source: https://www.bbc.com/news/articles/cz71gl2v1g4o?at_medium=RSS&at_campaign=rss