
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, December 23, 1994                   TAG: 9412230138
SECTION: BUSINESS                    PAGE: A-13   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

U.S. GOVERNMENT STATISTICS TO GET TECHNOLOGY UPDATE

The government's economic statistics, which some critics say do not measure growth accurately, are about to get an overhaul.

The Commerce Department said Thursday the data will be revised to reflect technological progress, the impact of foreign economies and other forces. The new methods of producing the figures were expected to be in use sometime next year.

The idea is to provide more accurate and comprehensive measurement, said Everett Ehrlich, the department's undersecretary for economic affairs.

He declined to speculate on the effect the new data would have on gross domestic product, the government's broadest gauge of economic growth. The changes might be in the components of GDP and not the overall figure, he said.

On Jan. 11, the department will release studies of shortcomings in the current system and needed changes. The agency plans to recommend specific improvements in February and discuss amendments in March with those who use the statistics.

Critics have said that government data overestimate inflation and fail to give an accurate picture of the nation's manufacturing capacity.

- Associated Press

by CNB