BLS DAILY REPORT, TUESDAY, DECEMBER 3, 1996 A congressional advisory commission tomorrow will recommend alterations in the government's method of calculating changes in consumer prices that would slow the growth of many federal benefit programs by 1.1 percentage points annually, according to sources who have been briefed on the panel's conclusions .....(Washington Post, page C1). Senators Moynihan (D-N.Y.) and Nickles (R-Okla.) urge the administration to support a downward revision of the CPI to better reflect the inflation rate, preferably in the context of fiscal 1998 budget talks. The remarks were made on CBS's "Meet the Press" ....Asked to comment on the senators' remarks, White House Press Secretary Mike McCurry said that the administration would "carefully consider" the recommendations of the Boskin group, as well as recommendations of the Bureau of Labor Statistics ....Office of Management and Budget Director Frank Raines said Nov. 26 that the administration is focused on the best technical revision of the CPI that may be necessary, as opposed to a legislative change that may be attempted before all the technical experts have weighed in ....(Daily Labor Report, page A-11). Government economic numbers are rarely trusted, says a USA Today article (page 1B). In a cover story, "Bad Data," USA Today reporter Beth Belton says that flawed economic reports rattle the markets and rifle pocketbooks. Government economic reports make headlines, trigger million-dollar trades on Wall Street, and influence billion-dollar decisions in Washington. Yet the numbers are often wrong, she says. Tomorrow, a congressional commission will report that the CPI overstates inflation by at least a percentage point ....The three examples given are: mistakes in GDP growth; undercounting the number of unemployed; and overestimating inflation .... Economic strength was shown by two measures -- in contrast to other recent data that showed a cooling economy ....(New York Times, page D7; Washington Times, page B10)_____The latest economic data bolstered expectations for solid fourth-quarter economic growth. Both manufacturing and construction showed signs of rebounding from recent doldrums ....(Wall Street Journal, page A2)_____Manufacturing activity and overall economic growth picked up speed in November, buoyed by snapbacks in new orders and production and a bounce in order backlogs, the National Association of Purchasing Management said. On the inflation front, the monthly survey of purchasing managers also revealed a net decline in prices paid by manufacturers for the second month in a row ....(Daily Labor Report, page A-9)_____Construction spending rose by 1.8 percent in October, marking the third monthly increase in a row, the Commerce Department says ....(Daily Labor Report, page A-10)_____Spending on new construction jumped sharply and unexpectedly during October, as industries kept adding capacity in apparent belief the 5-1/2-year-old expansion was continuing ....(Washington Post, page C1).
