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News Release: Gross Domestic Product by Industry, 2005 (advance)

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  BEA 06-16
Media: Ralph Stewart: 606-9690    

Services and Goods Sectors Both Strong Despite Slowdown in 2005
Advance Estimates of Gross Domestic Product (GDP) by Industry

In 2005, both the services-producing and goods-producing sectors continued their expansion, although each sector experienced a slowdown from its pace of growth in 2004. Newly-available data on the industry distribution of real GDP growth, released today by the U.S. Bureau of Economic Analysis, showed that the services-producing sector grew 4.1 percent and continued to be led by the information and professional and business services industry groups. The goods-producing sector increased 2.6 percent reflecting growth in manufacturing and construction that more than offset declines in mining and agriculture.

Despite slower growth in 2005, the manufacturing industry group continued to show strong growth, increasing 4.0 percent after increasing 4.8 percent in 2004. Durable-goods manufacturing increased 5.7 percent and continued to lead growth for the goods-producing sector due, in part, to the continued strength of computer and electronic products.

Price growth in both the goods-producing and services-producing sectors accelerated slightly in 2005, and growth was widespread as value-added prices increased in 19 of 22 industry groups. Overall, however, price growth in both sectors remained modest by historical standards.

Strong energy price growth impacted both goods-producing and services-producing industries in 2005. In the goods-producing sector, value-added prices increased 3.4 percent – above 3 percent for the third consecutive year – partly reflecting continued strong price growth in mining. In addition, manufacturing prices increased for the first time since 1995 due, in part, to accelerations in petroleum-related products. Price growth accelerated to 2.6 percent in the services-producing sector and was led by transportation and warehousing at 5.0 percent.

Other highlights of the advance industry estimates for 2005 include the following:

Additional Information:

NOTE: These estimates rely heavily on industry data underlying the “final” 2005 fourth quarter GDP release from the national income and product accounts (NIPAs). Definitional and conceptual differences affect the comparability of some NIPA and GDP-by-industry measures. For example, in the NIPAs, the value added by goods-distribution (e.g., transport and trade) industries is included in the market value of goods. In the GDP-by-industry accounts, however, the value added by goods-distribution industries is included in the services-producing sector. For more information, see “Gross Domestic Product by Industry for 1987-2000” in the November 2004 issue of the Survey of Current Business.

 

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Table 1. Percent Changes in Real Value Added by Industry Group
[Percent change]
  2002 2003 2004 2005 Average annual rate of change, 1995-2000
Gross domestic product
1.6 2.7 4.2 3.5 4.1
         
Private industries
1.4 2.8 4.7 3.8 4.6
Agriculture, forestry, fishing, and hunting
5.5 7.6 1.8 -4.4 6.5
Mining
-6.3 -1.5 2.3 -2.6 -1.1
Utilities
4.3 7.8 1.1 0.4 1.3
Construction
-2.0 -1.3 2.5 2.7 3.0
Manufacturing
2.8 1.9 4.8 4.0 5.4
Durable goods
1.7 4.3 6.3 5.7 8.9
Nondurable goods
4.2 -1.2 2.7 1.6 0.4
Wholesale trade
1.0 2.2 4.6 1.2 7.2
Retail trade
2.2 3.6 6.4 2.9 6.5
Transportation and warehousing
2.2 3.7 4.0 3.7 4.4
Information
2.1 2.7 12.8 7.4 8.0
Finance, insurance, real estate, rental, and leasing
0.9 3.4 3.8 4.1 4.4
Finance and insurance
2.2 5.9 1.0 6.7 6.5
Real estate and rental and leasing
0.1 1.9 5.6 2.5 3.1
Professional and business services
-0.2 3.2 6.4 5.9 5.3
Professional, scientific, and technical services
-1.5 2.3 7.1 7.0 6.9
Management of companies and enterprises
3.0 3.5 6.0 0.3 1.3
Administrative and waste management services
1.2 5.2 5.2 6.9 4.1
Educational services, health care, and social assistance
4.2 2.8 3.2 4.3 1.4
Educational services
2.6 1.1 0.8 0.8 2.1
Health care and social assistance
4.4 3.0 3.5 4.8 1.3
Arts, entertainment, recreation, accommodation, and food services
1.7 2.9 3.0 4.1 3.7
Arts, entertainment, and recreation
3.5 0.8 2.0 2.1 3.1
Accommodation and food services
1.1 3.8 3.4 4.8 3.9
Other services, except government
0.3 1.1 1.2 2.4 0.1
         
Government
1.7 1.3 1.0 1.1 1.2
Federal
2.0 1.9 1.6 1.1 -0.4
State and local
1.5 1.0 0.7 1.2 2.0
         
Addenda:          
Private goods-producing industries1
1.3 1.2 3.9 2.6 4.7
Private services-producing industries2
1.5 3.2 4.9 4.1 4.6
Information-communications-technology-producing industries3
2.0 6.7 12.9 11.9 22.1
           
1.  Consists of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing.
2.  Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food services; and other services, except government.
3.  Consists of computer and electronic products within durable-goods manufacturing; publishing industries (includes software) and information and data processing services within information; and computer systems design and related services within professional, scientific, and technical services.
Source:  U.S. Bureau of Economic Analysis

 

Table 2. Percent Change in Chain-Type Price Indexes for Value Added by Industry Group
[Percent change]
  2002 2003 2004 2005 Average annual rate of change, 1995-2000
Gross domestic product
1.7 2.0 2.6 2.8 1.7
         
Private industries
1.5 1.9 2.5 2.8 1.4
Agriculture, forestry, fishing, and hunting
-7.5 11.2 21.8 -12.0 -5.1
Mining
-4.2 35.6 18.1 27.5 11.6
Utilities
-1.7 -0.4 4.5 1.1 -0.4
Construction
4.8 5.3 7.0 5.1 5.6
Manufacturing
-1.9 -0.6 -1.0 1.4 -1.4
Durable goods
-2.2 -2.8 -1.3 -0.3 -3.6
Nondurable goods
-1.4 2.3 -0.6 3.7 1.9
Wholesale trade
0.4 0.6 4.9 4.3 -1.7
Retail trade
1.8 0.8 -1.1 1.8 -1.3
Transportation and warehousing
0.3 1.9 -0.5 5.0 1.4
Information
-0.9 -0.8 -2.9 -0.1 0.3
Finance, insurance, real estate, rental, and leasing
3.1 2.0 2.8 2.5 2.4
Finance and insurance
2.8 1.6 3.7 2.2 1.9
Real estate and rental and leasing
3.2 2.3 2.2 2.7 2.8
Professional and business services
2.1 0.7 2.8 2.6 3.5
Professional, scientific, and technical services
2.5 0.8 0.7 2.7 2.5
Management of companies and enterprises
0.4 0.7 8.7 4.2 6.1
Administrative and waste management services
2.4 0.5 3.9 1.3 4.3
Educational services, health care, and social assistance
3.8 3.5 3.6 3.1 3.5
Educational services
6.8 5.6 5.8 5.5 5.0
Health care and social assistance
3.4 3.2 3.3 2.8 3.4
Arts, entertainment, recreation, accommodation, and food services
3.7 1.5 3.3 3.2 3.3
Arts, entertainment, and recreation
3.4 3.0 2.9 3.5 4.1
Accommodation and food services
3.9 1.0 3.4 3.1 3.1
Other services, except government
4.2 3.5 3.8 3.6 4.8
         
Government
4.6 4.4 3.9 3.5 2.7
Federal
6.1 5.2 4.8 2.9 2.7
State and local
4.0 4.0 3.4 3.8 2.7
         
Addenda:          
Private goods-producing industries1
-0.8 3.2 3.3 3.4 0.3
Private services-producing industries2
2.2 1.5 2.3 2.6 1.8
Information-communications-technology-producing industries3
-3.7 -5.3 -6.3 -3.5 -9.0
1.  Consists of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing.
2.  Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food services; and other services, except government.
3.  Consists of computer and electronic products within durable-goods manufacturing; publishing industries (includes software) and information and data processing services within information; and computer systems design and related services within professional, scientific, and technical services.
Source:  U.S. Bureau of Economic Analysis