Industry

Gross Domestic Product (GDP) is a measure of the goods and services produced by a nation’s economy, valued at current market prices. Market prices reflect the incomes earned from production, including taxes paid on production and imports that accrue to governments. A tariff is a customs duty levied on foreign-produced goods that enter the domestic economy as an import.

The import column of the input-output (I-O) “use” table shows total U.S. demand for imported goods and services. The import matrix shows the value of imports purchased for final use and for intermediate use by industries for each of these commodities. The import matrix may help users assess how an industry’s use of imports in production affects its output and profits.

Full-time equivalent employees equal the number of employees on full-time schedules plus the number of employees on part-time schedules converted to a full-time basis. The number of full-time equivalent employees in each industry is the product of the total number of employees and the ratio of average weekly hours per employee for all employees to average weekly hours per employee on full-time schedules. An industry’s full-time equivalent employment will be less than the number of its employees on full- and part-time schedules, unless it has no part-time employees.

Significant differences in definition, classification, and valuation affect the comparability of measures from the AIAs and the NIPAs. As described below, the AIAs measure GDP as the sum of industry value added, whereas the NIPAs measure GDP as the sum of final expenditures. Furthermore, the estimates from the AIAs are based on the classification of establishments (producing units), while the estimates from the NIPAs are based on the classification of products (goods, services, or structures).

Double deflation is the technique used to estimate real value added of an industry.  In the double deflation method, real value added is measured as the difference between real gross output and real intermediate inputs.  Double deflation is the conceptually preferred method of computing real value added because it requires fewer assumptions about the relationships among gross output and intermediate inputs. 

Since the 1998 comprehensive revision of the Industry accounts, an industry’s annual gross output is derived by extrapolating its gross output as reported in the BEA’s most recent (2002) benchmark input-output (I-O) accounts. For example, Information sector (NAICS 51) gross output is currently estimated by extrapolating the value from the 2002 benchmark I-O accounts with source data from the Service Annual Survey (SAS) published by the U.S. Census Bureau.

KLEMS (K-capital, L-labor, E-energy, M-materials, and S-purchased services) refers to broad categories of intermediate inputs that are consumed by industries in their production of goods and services.  The detailed estimates of intermediate inputs of an industry are classified into one of three cost categories—energy, materials, and purchased services; the labor cost category equals an industry’s compensation to labor from value added, and the capital cost category equals the industry’s gross operating surplus plus taxes on production and imports less subsidies.  For mor

The annual input-output (I-O) accounts show how U.S. industries interact; specifically, they show how industries provide input to, and use output from, each other to produce the nation’s gross domestic product (GDP).  This detailed information on the flows of the goods and services that comprise the production process of industries is presented in two standard tables: the standard I-O make table and the standard I-O use table.

The annual input-output (I-O) accounts are integrated with the GDP by industry accounts and present consistent measures of gross output, intermediate inputs, and value added by industry. These accounts were integrated as part of the 2004 comprehensive revision of the annual industry accounts in order to improve the accuracy of both sets of accounts.  These accounts were used to incorporate updated source data, methodologies, and definitional changes as part of the 2010 comprehensive revision.