WIREDGOV

The Office for National Statistics (ONS) has yesterday released new National Accounts and Balance of Payments data, consistent with the 2014 Blue and Pink Books, up to Q2 2014.

The new data are based on the most far-reaching set of improvements to the National Accounts in the last 15 years or so. They incorporate improvements stemming from the implementation of new international standards, designed to ensure the continuing relevance of the Accounts to the evolving economy as well as ensuring international comparability.

Additionally, they incorporate a wide range of other methodological and data improvements which have been described and set out previously. These changes are part of an international agenda that will ensure that ONS is able to continue to measure the UK’s changing economy to a high standard.

The new data show that during the recent downturn the economy shrank by 6.0%, rather than the 7.2% previously estimated. GDP was also estimated to have exceeded its pre-financial crisis levels in Q3 2013, three quarters sooner than previously estimated. However, overall, the average absolute quarter-on-quarter revision between 1997 and 2014 Q2 was 0.16 percentage points.

Commenting on the new data, ONS Chief Economist Joe Grice said:

“Today’s figures show how the changes to National Accounts have altered the picture of the UK economy, on the basis of the new international standards and other improvements that have been put in place, as well as the new data that has now come available.

“While the changes included in these National Accounts are far reaching, the net difference they make to the path of the economy is limited. The average growth rate over the whole period is little changed. The recent downturn continues to be the deepest since ONS records began. It was followed by a period of quite significant recovery, then a much slower and bumpier one. The new figures also confirm that growth has become stronger over the last 18 months or so.”

ONS has previous released a number of articles setting out the improvements that are being made. These articles are listed below:

• The overall package of changes was described on 28 April 
• Articles on 29 May described the impact on current price GDP from those changes not related to new international standards (‘ESA 2010’, for short) 
• Articles were published on 10 June giving estimates of the impact on the level of current price GDP from the changes due to the implementation of ESA 2010 
• On 30 June, articles described the impact of the changes on annual growth in the headline measure of GDP over the period 1997 to 2009 
• Articles on 9 July detailed the impact of the changes on the Sector & Financial Accounts and Balance of Payments, as well as an article comparing the impact of the UK’s National Accounts changes with those being implemented in other countries 
• On 23 July an article was published giving details of the impacts of the changes on the expenditure and income components of GDP 
• Further detail of the impact of the changes on the expenditure components of GDP were set out on 12 August 
• Estimates of annual current price GDP levels for 2010-2012, annual real GDP growth for 2010-2012, quarterly GDP growth figures for 1997-2012, changes on the Balance of Payments for 1997-2009, the estimated impact of the changes on the Sector and Financial Accounts and estimates of the impact of the new method for inflating imputed rental data were published on 3 September 
• Further detail about the changes to the treatment of pensions and the implications for measuring household saving, detail of the impact of changes to key Income and Capital Account (Sector and Financial Accounts) estimates and the impact of the changes on the Balance of Payments for 2010-2012 were announced on 17 September

Background notes

1. An article setting out the impact of the changes to National Accounts along with economic commentary is available here: http://www.ons.gov.uk/ons/rel/naa1-rd/national-accounts-articles/impact-of-changes-in-the-national-accounts-and-economic-commentary-for-2014-quarter-2/index.html
2. The Quarterly National Accounts statistical bulletin is available here: http://www.ons.gov.uk/ons/rel/naa2/quarterly-national-accounts/q2-2014/stb-quarterly-national-accounts--q2-2014.html
3. The Balance of Payments statistical bulletin is available here: http://www.ons.gov.uk/ons/rel/bop/balance-of-payments/q2-2014/stb-bop-q2-2014.html
4. National Statistics are produced to high professional standards set out in the Code of Practice for Official Statistics. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference. 
   © Crown copyright 2014. 

5. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk