Transforming Qualitative Survey Data : Performance Comparisons for the UK

This paper assesses different ways of converting qualitative data obtained in surveys into quantitative indices for a number of economic variables. The research reported here focuses on the main UK employers' business survey for manufacturing - the CBI industrial trends survey. Six response variables are investigated - plant and machinery investment, output, employment, exports, price and cost. We find that the balance statistic is a satisfactory method of transforming three of the variables: investment, output and exports