Finance and Insurance Led Growth in the Fourth Quarter
Gross Domestic Product by Industry: Fourth Quarter and Annual 2016
Finance and insurance; retail trade; and professional, scientific, and technical services were the leading contributors to the increase in U.S. economic growth in the fourth quarter of 2016. According to gross domestic product (GDP) by industry statistics released by the Bureau of Economic Analysis, 19 of 22 industry groups contributed to the overall 2.1 percent increase in real GDP in the fourth quarter.
- For the finance and insurance industry group, real value added—a measure of an industry’s contribution to GDP—increased 6.3 percent in the fourth quarter, after increasing 9.0 percent in the third quarter. The fourth quarter growth primarily reflected increases in Federal Reserve banks, credit intermediation, and related activities, as well as insurance carriers and related activities.
- Retail trade increased 5.7 percent, after increasing 2.6 percent. The fourth quarter growth primarily reflected an increase in other retail, which includes gasoline stations, as well as building material and garden equipment and supplies stores.
- Professional, scientific, and technical services increased 3.6 percent, after increasing 2.6 percent. This was the eleventh consecutive quarter of growth and primarily reflected increases in miscellaneous professional, scientific, and technical services, which includes industries like architectural and engineering services; scientific research and development services; and management consulting services.
- Real GDP growth slowed to 2.1 percent in the fourth quarter, from 3.5 percent in the third quarter. Nondurable goods manufacturing was the leading contributor to the deceleration in real GDP in the fourth quarter. Real value added for the industry group decreased 7.1 percent, after decreasing 0.4 percent in the third quarter. The larger decrease was primarily attributed to petroleum and coal products manufacturing.
- Information services increased 0.9 percent, after increasing 8.6 percent, and was the second leading contributor to the slowdown. The deceleration was primarily attributed to a slowdown in broadcasting and telecommunications.
- Wholesale trade increased 2.6 percent, after increasing 8.3 percent.
Gross output by industry
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 in the fourth quarter. This reflected increases in real gross output for both the private goods- and services-producing sectors, while the government sector decreased. Overall, real gross output increased in 18 of 22 industry groups.
- Real gross output for retail trade increased 8.0 percent, after increasing 2.5 percent in the third quarter.
- Information services increased 1.5 percent, after increasing 8.5 percent. The increase was primarily attributed to broadcasting and telecommunications, which has increased for fifteen consecutive quarters.
- Professional, scientific, and technical services increased 3.9 percent, after increasing 1.9 percent, primarily reflecting growth in legal services.
2016 GDP by industry
Real GDP increased 1.6 percent in 2016 (that is, from the 2015 annual level to the 2016 annual level). The private goods- and services-producing sectors, as well as the government sector, contributed to the increase. Growth was widespread, with 19 of 22 industry groups contributing to the increase. Information services; professional, scientific, and technical services; and health care and social assistance were the leading contributors to the increase in real GDP.
- Information services real value added increased 6.4 percent in 2016, after increasing 7.5 percent in 2015. This was the seventh consecutive annual increase.
- Professional, scientific, and technical services increased 3.3 percent, after increasing 5.1 percent.
- Health care and social assistance increased 3.0 percent, after increasing 4.5 percent, primarily reflecting an increase in ambulatory health care services.
Next release — July 21, 2017 at 8:30 A.M. EDT for:
Gross Domestic Product by Industry: First Quarter 2017
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- Industry Concepts and Methods: Concepts and Methods of the U.S. Input-Output Accounts
Gross domestic product (GDP) or value added is the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private domestic investment, net exports of goods and services, and government consumption expenditures and gross investment.
Gross output (GO) is the value of the goods and services produced by the nation’s economy. It is principally measured using industry sales or receipts, including sales to final users (GDP) and sales to other industries (intermediate inputs).
Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is, at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.”
Real values are inflation-adjusted estimates—that is, estimates that exclude the effects of price changes.
Seasonal adjustment and annual rates. Monthly and quarterly values are expressed at seasonally-adjusted annual rates (SAAR). Dollar changes are calculated as the difference between these SAAR values. For details, see the FAQ “Why does BEA publish estimates at annual rates?”
Quantities and prices. Quantities, or “real” measures, and prices are expressed as index numbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are calculated using a Fisher-chained weighted formula that incorporates weights from two adjacent periods (quarters for quarterly data and annuals for annual data). “Real” dollar series are calculated by multiplying the published quantity index by the current-dollar value in the reference year (2009) and then dividing by 100. Percent changes calculated from chained-dollar levels and quantity indexes are conceptually the same; any differences are due to rounding.
Chained-dollar values are not additive because the relative weights for a given period differ from those of the reference year. In tables that display chained-dollar values, the value of the "Not allocated by industry" line reflects the difference between the first line and the sum of the most detailed lines. For the real value added by industry table, this value also reflects differences in source data used to estimate GDP by industry and the expenditures measure of real GDP.
List of News Release Tables
Table 1. Real Value Added by Industry Group: Percent Change from Preceding Period
Table 2. Contributions to Percent Change in Real GDP by Industry Group
Table 3. Chain-Type Price Indexes for Value Added by Industry Group: Percent Change from Preceding Period
Table 4. Contributions to Percent Change in the GDP Price Index by Industry Group
Table 5. Value Added by Industry Group
Table 5a. Value Added by Industry Group as a Percentage of GDP
Table 6. Real Gross Output by Industry Group: Percent Change from Preceding Period
Table 7. Chain-Type Price Indexes for Gross Output by Industry Group: Percent Change from Preceding Period
Table 8. Gross Output by Industry Group