Officials Underestimate Telecoms AND Productivity
19th January 2018.
Productivity could be better than thought as a result of underestimated data from telecommunication and digital sectors. New research has revealed that the telecommunications sector was overstated by 90 percent from 2010 to 2015 by the Office for National Statistics (ONS). This will be good news for businesses within that sector, and any other business that takes advantage of telecoms technology. This once again shows the growing role technology is playing in business, even if official bodies such as ONS are slow on the uptake. The Credit Protection Association has been around for over 100 years and while we respect our roots, we understand the only direction for businesses is forward.
A new economic paper has highlighted certain errors in the findings of the ONS over the last few years. This has made some economists question whether its methods are inadequate for measuring innovation.
New findings by the Economic Statistics Centre of Excellence could show that the economy is larger than official figures say.
Diane Coyle, a professor at Manchester University is not too optimistic and sees digital effects as “having an effect” but not explaining away the productivity slowdown.
Ms Coyle further suggests that further analysis may not show the economy as any larger, but that the telecoms sector is that much bigger.
Nonetheless, the new data has suggested that prices within telecoms could be 35-90 percentage points lower than as previously reported. Certain advancements such as the move from 3G to 4G will be large factors.
Telecommunications is on the rise. It is an essential component of every business in the UK, from their use of computers, IPads, mobile phones, and landlines. The central role telecoms play in the lives of businessmen and women make it an easy factor in enhancing productivity. Many Government bodies are still struggling to fully accept the important role played by technology in our lives and this recent expose of ONS is a prime example. Here at The Credit Protection Association, we have experienced first-hand the damage that poor productivity plays in a business. We have seen credit management adapt accordingly, and we can only encourage our old and young members to embrace it.
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