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Which Industries Are Growing the Strongest?

Here’s an interesting report that breaks down economic growth (GDP growth) by industry. Published by…

  • August 19, 2018

Here’s an interesting report that breaks down economic growth (GDP growth) by industry.

Published by the Bureau of Economic Analysis, the report goes beyond the singular top-line number, to show which industries are doing well, which are doing really well, and which ones are lagging.

First, the top-line number. Growth is strong.

Economy-wide, real gross output—principally a measure of an industry’s sales or receipts, which includes sales to final users in the economy (GDP) and sales to other industries (intermediate inputs)—increased 2.7 percent in the first quarter.

This reflected an increase of 3.2 percent for the private goods-producing sector, 3.0 percent for the private services-producing sector, and 0.3 percent for the government sector.

Overall, 13 of 22 industry groups contributed to the increase in real gross output.

Real Estate, Information and Nondurable Goods Manufacturing Lead the Way

Real estate and rental and leasing; information; and nondurable goods manufacturing were the leading contributors to the increase in U.S. economic growth in the first quarter of 2018.

According to gross domestic product (GDP) by industry statistics released by the Bureau of Economic Analysis, 14 of 22 industry groups contributed to the overall 2.0 percent increase in real GDP in the first quarter.

For the real estate and rental and leasing industry group, real value added—a measure of an industry’s contribution to GDP—increased 3.3 percent in the first quarter, after increasing 1.9 percent in the fourth quarter. The first quarter growth primarily reflected an increase in the housing services industry.

Information services increased 6.8 percent, after decreasing 0.2 percent. The first quarter growth primarily reflected increases to both broadcasting and telecommunications and the publishing industry.

Nondurable goods manufacturing increased 3.8 percent, after increasing 3.1 percent. The first quarter growth primarily reflected increases in petroleum and coal products, as well as food, beverage and tobacco products.

Transportation and warehousing increased 6.4 percent, after increasing 5.4 percent, primarily reflecting an increase in air transportation.

Durable goods manufacturing increased 3.2 percent, after increasing 7.2 percent, and was the second leading contributor to the slowdown.

Transportation and warehousing increased 6.5 percent, after increasing 0.7 percent. This was the largest increase since the fourth quarter of 2014 and primarily reflected increases in air and truck transportation.

Information services increased 7.2 percent, after increasing 4.2 percent. This industry has increased for seven consecutive quarters.

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