McCafferty: Private sector data plugs holes in ONS’ statistics

Tim Wallace
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Bank of England policy maker Ian McCafferty. (Source: Getty)
Official statistics do not give information on the vital “animal spirits” which hint at the future path of the economy, Bank of England policy maker Ian McCafferty said yesterday.

He praised private sector surveys and the Bank’s direct contact with firms as ways to gain more information on sentiment in the wider economy, and to gauge spare capacity in businesses.

“Having a sense of the economic mood is vital and provides a reality check on the outputs from economic models which are a necessary simplification of the actual economy,” McCafferty said.

He is the former chief economic adviser at the Confederation of British Industry, which publishes influential surveys of its members.