EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, TUESDAY, DECEMBER 14, 2010 Technical: Nicole Mayerhauser (202) 606-5307 BEA 10-57 Erich Strassner Media: Ralph Stewart (202) 606-9690 2009 Decline Widespread Across Industries Revised Statistics of Gross Domestic Product by Industry for 2007-2009 Downturns in durable-goods manufacturing and professional, scientific, and technical services along with the continued contraction of construction were among the leading contributors to the decline in U.S. economic growth in 2009, according to revised statistics on the breakout of real gross domestic product (GDP) by industry from the Bureau of Economic Analysis. The revised statistics reflect the incorporation of newly available source data, primarily revised corporate profits by industry./1/ The economic downturn was widespread with 16 of 22 major industry groups contributing to the decline in real GDP growth. • Manufacturing value added—a measure of an industry’s contribution to GDP—declined for the second consecutive year, falling 8.6 percent in 2009, more sharply than the 4.8 percent decline in 2008. Durable-goods manufacturing decreased 12.7 percent in 2009 after growing 1.0 percent in 2008. Nondurable-goods manufacturing declined at a slower rate of 3.4 percent in 2009, compared with the 11.8 percent drop in 2008. • Construction declined for the fifth consecutive year, falling 15.6 percent in 2009, compared to a decline of 5.7 percent in 2008. • Professional, scientific and technical services turned down in 2009, falling 3.4 percent, after increasing 4.2 percent in 2008. /1/ Corporate profits were revised on July 30, 2010 with the release of the annual revision of the National Income and Product Accounts. More detail on the sources of revision will be available in the January 2011 Survey of Current Business. Prices: Declines in value added prices for mining, wholesale trade, and agriculture 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. • Prices for mining fell sharply in 2009, decreasing 40.4 percent after increasing 29.1 percent in 2008, primarily reflecting steep declines in prices for petroleum, natural gas, and other mining products. • Prices for agriculture fell 21.0 percent in 2009, after increasing 1.4 percent in 2008, primarily reflecting decreases in most crop and livestock commodity prices. Other highlights: • The private goods-producing sector value added fell 6.4 percent in 2009, after a 4.2 percent decline in 2008. • The private services-producing sector declined by 2.1 percent, after a 0.4 percent increase in 2008. • The finance and insurance industry grew 6.1 percent in 2009, partially offsetting the widespread economic decline. The increase was primarily driven by the strong recovery of the insurance carriers industry. BEA’s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. Advance statistics of gross domestic product (GDP) by industry for 2010 will be released on April 26, 2011 at 8:30 A.M. EDT. * * * Table 1. Real Value Added by Industry Group [percent change] 2006 2007 2008 2009 Gross domestic product………………………………………………………………………………… 2.7 1.9 0.0 -2.6 Private industries………………………………………………………………………………………………… 3.0 2.1 -0.7 -3.0 Agriculture, forestry, fishing, and hunting………………………… 0.8 -7.4 9.1 5.3 Mining…………………………………………………………………………………………………………………………… 8.1 3.0 -3.4 27.4 Utilities…………………………………………………………………………………………………………………… 0.7 3.4 6.0 -9.0 Construction…………………………………………………………………………………………………………… -2.9 -5.3 -5.7 -15.6 Manufacturing………………………………………………………………………………………………………… 4.4 3.3 -4.8 -8.6 Durable goods…………………………………………………………………………………………………… 6.8 3.7 1.0 -12.7 Nondurable goods…………………………………………………………………………………………… 1.3 2.8 -11.8 -3.4 Wholesale trade…………………………………………………………………………………………………… 3.1 5.6 -0.1 2.8 Retail trade…………………………………………………………………………………………………………… 1.8 1.3 -6.9 -1.9 Transportation and warehousing…………………………………………………………… 4.5 0.9 0.8 -13.0 Information……………………………………………………………………………………………………………… 1.0 8.5 4.1 -2.5 Finance, insurance, real estate, rental, and leasing… 4.2 1.7 0.0 1.1 Finance and insurance……………………………………………………………………………… 6.7 -2.2 -4.0 6.1 Real estate and rental and leasing…………………………………………… 2.6 4.3 2.5 -1.8 Professional and business services………………………………………………… 3.4 2.5 3.1 -5.0 Professional, scientific, and technical services……… 4.7 3.0 4.2 -3.4 Management of companies and enterprises……………………………… 1.0 -1.4 2.4 -2.1 Administrative and waste management services………………… 1.7 3.9 0.7 -11.1 Educational services, health care, and social assistance……………………………………………………………………………………………………… 3.3 1.8 4.0 1.1 Educational services………………………………………………………………………………… 0.8 0.7 1.7 -1.4 Health care and social assistance……………………………………………… 3.7 1.9 4.3 1.5 Arts, entertainment, recreation, accommodation, and food services……………………………………………………………………………………………… 3.0 1.5 -4.6 -8.7 Arts, entertainment, and recreation………………………………………… 4.9 2.8 -1.6 -7.8 Accommodation and food services…………………………………………………… 2.4 1.1 -5.6 -9.0 Other services, except government…………………………………………………… 0.1 0.2 -4.8 -6.8 Government……………………………………………………………………………………………………………………… 0.5 0.8 2.1 0.8 Federal………………………………………………………………………………………………………………………… -0.3 0.3 2.6 3.6 State and local…………………………………………………………………………………………………… 0.8 1.0 1.9 -0.5 Addenda: Private goods-producing industries/1/………………………………………… 2.7 0.6 -4.2 -6.4 Private services-producing industries/2/………………………………… 3.1 2.5 0.4 -2.1 Information-communications-technology-producing industries/3/……………………………………………………………………………………………… 7.8 8.8 8.8 -0.5 /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. Chain-Type Price Indexes for Value Added by Industry Group [percent change] 2006 2007 2008 2009 Gross domestic product………………………………………………………………………………… 3.3 2.9 2.2 0.9 Private industries………………………………………………………………………………………………… 3.0 2.7 2.4 0.5 Agriculture, forestry, fishing, and hunting………………………… -4.4 27.6 1.4 -21.0 Mining…………………………………………………………………………………………………………………………… 10.3 7.8 29.1 -40.4 Utilities…………………………………………………………………………………………………………………… 14.0 1.8 -0.4 12.2 Construction…………………………………………………………………………………………………………… 9.6 6.6 0.6 2.1 Manufacturing………………………………………………………………………………………………………… 0.9 -0.4 1.9 5.3 Durable goods…………………………………………………………………………………………………… -1.5 -1.5 -2.7 7.2 Nondurable goods…………………………………………………………………………………………… 4.1 1.0 8.0 3.1 Wholesale trade…………………………………………………………………………………………………… 3.0 0.1 1.3 -7.7 Retail trade…………………………………………………………………………………………………………… 2.4 -0.1 1.9 -0.5 Transportation and warehousing…………………………………………………………… 2.4 1.6 2.4 6.9 Information……………………………………………………………………………………………………………… -0.8 -1.6 -1.0 0.5 Finance, insurance, real estate, rental, and leasing… 2.3 2.3 2.9 1.1 Finance and insurance……………………………………………………………………………… 0.8 2.7 3.2 0.3 Real estate and rental and leasing…………………………………………… 3.3 2.1 2.7 1.5 Professional and business services………………………………………………… 4.0 5.5 0.9 1.3 Professional, scientific, and technical services……… 3.9 4.9 2.0 1.1 Management of companies and enterprises……………………………… 6.6 11.4 -1.3 -3.2 Administrative and waste management services………………… 2.8 3.6 -0.5 4.7 Educational services, health care, and social assistance……………………………………………………………………………………………………… 3.0 4.4 2.5 4.4 Educational services………………………………………………………………………………… 6.3 6.0 5.3 6.9 Health care and social assistance……………………………………………… 2.6 4.1 2.1 4.0 Arts, entertainment, recreation, accommodation, and food services……………………………………………………………………………………………… 3.1 5.0 3.0 5.0 Arts, entertainment, and recreation………………………………………… 2.9 3.3 2.2 2.2 Accommodation and food services…………………………………………………… 3.1 5.6 3.2 5.9 Other services, except government…………………………………………………… 4.1 3.6 3.9 5.6 Government……………………………………………………………………………………………………………………… 4.7 4.7 3.2 2.8 Federal………………………………………………………………………………………………………………………… 5.3 4.6 2.3 1.7 State and local…………………………………………………………………………………………………… 4.4 4.8 3.6 3.3 Addenda: Private goods-producing industries/1/………………………………………… 3.5 3.2 4.1 -3.0 Private services-producing industries/2/………………………………… 2.9 2.6 1.9 1.4 Information-communications-technology-producing industries/3/……………………………………………………………………………………………… -3.3 -4.9 -3.8 -0.7 /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