ONS Massages The Statistics

The Office for National Statistics (ONS), for the first time in 15 years, is to change the way that it measures the economy.

The new accounting standards will take effect from September. The ONS will look at research and development spending to calculate its estimate of gross domestic product, rather than treating it as a cost of production. The construction of aircraft carriers and other weapons will also add to GDP.

The changes could add up to 5% to economic growth.

The ONS, in a bizarre move, will also count future pension rights as if they were present income.This is predicted to double the savings ration to around 10%.

Coincidentally George Osborne last week said that Britain needed to save more and that the measures announced in his “Budget for savers” were just a start.

Thus in one fell swoop the ONS has done Osborne a "solid".

Simples!