By Rohan Churm, Sylaja Srinivasan and Ryland Thomas of the Bank's Monetary Analysis Division, and Sanjiv Mahajan, Fenella Maitland-Smith and Geoff Tily of the Office for National Statistics (ONS).
A measure of private or market sector activity is useful for assessing demand pressures and productivity trends in the economy. This article discusses the practical issues involved in constructing a measure of the market sector's gross value added (MSGVA) for the United Kingdom. It looks at the existing estimates currently constructed by the ONS and the Bank of England using National Accounts data, and discusses how the Bank of England uses these estimates when analysing demand pressures in the economy.
Measuring market sector activity in the United Kingdom