Industry

Industry estimates of value added are based on industry distributions of the components of gross domestic income (GDI) from the national income and product accounts (NIPA). The NIPA industry distributions of compensation of employees and taxes on production less subsidies are used directly. For gross operating surplus, the NIPA industry distributions of income tax-based corporate enterprise data are redistributed to industries on an establishment basis. Gross operating surplus is then adjusted for consistency with NIPA estimates of GDP.

Most measures of industry performance focus on an industry’s value added (GDP-by-industry) and represent the contribution by an industry to the nation’s GDP. Comparison of the growth rate of an industry’s real value added with that of real GDP indicates whether an industry is growing above or below the overall pace of U.S. economic growth. An industry’s contribution to real GDP growth indicates the extent to which the industry is affecting the growth of real GDP. Changes in an industry’s share of current-dollar GDP indicate whether the industry’s use of value added inputs (i.e.

Intermediate inputs of an industry are the goods and services (including energy, raw materials, semi-finished goods, and services that are purchased from all sources) that are used in the production process to produce other goods or services rather than for final consumption. It equals the industry’s gross output (consisting of sales or receipts and other operating income, commodity taxes, and inventory change) less value added (consisting of compensation of employees, taxes on production and imports less subsidies, and gross operating surplus).

The value added of an industry, also referred to as gross domestic product (GDP)-by-industry, is the contribution of a private industry or government sector to overall GDP. The components of value added consist of compensation of employees, taxes on production and imports less subsidies, and gross operating surplus.

Gross output (GO) of an industry is the value of the goods and services produced by an industry. It is principally measured using industry sales or receipts, including sales to final users (GDP) and sales to other industries (intermediate inputs). Gross output differs from value added, which measures the contribution of the industry’s labor and capital to its gross output.

In the industry accounts, goods-producing industries consist of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing. Services-producing industries consist 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, recreational, accommodation, and food services; and other services (except public administration).

There are concordances available on the U.S. Census Bureau’s website. They can be found by clicking on the following link: https://www.census.gov/naics/?68967

Currently, industries are defined according to the 2002 North American Industry Classification System (NAICS This system, which was established by the United States, Canada, and Mexico, provides a consistent framework for the collection, analysis, and dissemination of industrial statistics in the three North American countries The NAICS classifies economic units that have similar production processes in the same industry and the lines drawn between industries demarcate, to the extent practicable, differences in production processes.

Information about the Travel and Tourism Satellite Accounts (TTSA) may be found by clicking on the following link: http://www.bea.gov/industry/tourism_data.htm

At present, only the estimates of travel and tourism are produced on a quarterly basis in a “satellite” account to the annual industry accounts. Research to produce quarterly GDP by industry estimates is an ongoing component of BEA’s strategic plan.  A prototype set of value added statistics by broad industry sector was published in the July 2011 Survey of Current Business (SCB).