¹Office for National Statistics

Outlines a methodology for the above, demonstrating that apparently significant divergence can often be accounted for by coverage differences

This article outlines a methodology for monitoring the coherence between official data published by the Office for National Statistics (ONS) and business survey data in the form of Purchasing Managers' Indices (PMI). PMI data, particularly relating to the services sector, are being increasingly used by policy-makers and analysts in forming their view of current economic trends. The article demonstrates that what may sometimes appear as significant divergence between the two sources can often be accounted for by differences between their coverage and that the underlying signals in the two approaches are generally coherent.

Full Version

The Full Text of this article can be found on the National Statistics website(http://www.statistics.gov.uk/elmr/05_08/downloads/elmr_may08_chamberlin.pdf).