2009 Decline Widespread Across Industries
Advance GDP by Industry Statistics for 2009 and Revised Statistics for 1998-2008
Downturns in durable-goods manufacturing and finance and insurance and a continued contraction in construction were the leading contributors to the downturn in U.S. economic growth in 2009, according to preliminary statistics on the breakout of real gross domestic product (GDP) by industry from the Bureau of Economic Analysis. The economic downturn was widespread: 15 of 22 industry groups contributed to the decline in real GDP growth.
- Manufacturing value added—a measure of an industry’s contribution to GDP—fell 5.9 percent in 2009, a sharper decline than the 3.6 percent drop in 2008. Durable-goods manufacturing turned down for the first time since 2001, decreasing 7.5 percent after growing 0.3 percent in 2008. Nondurable-goods manufacturing fell 3.8 percent, a slower decline than the 8.2 percent drop in 2008.
- Construction value added fell 9.9 percent in 2009, reflecting declines in residential and nonresidential activity. Construction contracted for the fifth consecutive year.
- Finance and insurance value added dropped 2.7 percent in 2009, after increasing 3.2 percent in 2008.
Declines in value added prices for mining and agriculture and a sharp deceleration in prices for nondurable-goods manufacturing were the largest contributors to the slowdown in the GDP price index for 2009. Value added prices measure changes in an industry’s labor and capital input prices, including profit margins.
- Value added prices for mining fell sharply in 2009, decreasing 27.4 percent after increasing 26.4 percent in 2008, primarily reflecting decreases in prices for petroleum.
- Value added prices for agriculture industries fell 20.1 percent in 2009, after increasing 1.4 percent in 2008, primarily reflecting decreases in prices for crops and livestock.
- Growth in value added prices for finance and insurance and real estate partially offset the sharp declines in prices for mining and agriculture.
Comprehensive Revision of the Annual Industry Accounts
The estimates released today reflect the results of the comprehensive revision of the annual industry accounts for 1998-2008. This revision incorporates major changes in definitions, classifications, and statistical methods that update the accounts to more accurately portray the evolving U.S. economy. Major changes introduced with this revision include:
- Updated industry and commodity definitions consistent with the 2002 North American Industry Classification System (NAICS).
- The results of the 2002 benchmark input-output (I-O) accounts, including U.S. Census Bureau data on shipments, receipts, and business expenses from the 2002 Economic Census, Business Expense Survey, and Services Annual Survey (SAS).
- The results of the 2009 comprehensive revision of the national income and product accounts, including the new classification system for personal consumption expenditures and new estimates of underreporting and nonreporting of income.
- New producer price indexes from the Bureau of Labor Statistics (BLS) used to deflate gross margin output for the retail trade sector.
- Expanded annual business expense data from the SAS.
- A new interpolation method to prepare time-series annual industry accounts between the 1997 and the newly available 2002 benchmark I-O tables.
- An improved method to “reconcile” value added by industry within a balanced I-O framework.
More information on this revision is available on BEA’s website at www.bea.gov/industry
, including a link to an article in the March 2010 issue of the Survey of Current Business
that describes in more detail the major changes listed above. An article in the June Survey will highlight the results of the improved annual industry accounts, including the advance GDP by industry statistics for 2009.