News Release: Gross Domestic Product by Industry, 2003-2005 (revised)

Available for this release: Full Release: PDF (52 kb), Charts and Tables: XLS (112 kb), Highlights (36 kb)

Sign up for Gross Domestic Product by Industry News Releases.

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, MONDAY, DECEMBER 11, 2006

The strong growth within the services-producing sector is composed of increases in the information (9.0 percent); professional, scientific, and technical services (6.8 percent); and retail trade (5.0 percent) industry groups. These three industry groups accounted for nearly one-half of the services-producing sector’s contribution to real GDP growth in 2005.

The information-communication-technology-producing industry group (ICT) continues to be an engine of GDP growth, experiencing double-digit growth for the second straight year in 2005. The main drivers of growth in both the private services-producing and private goods-producing sectors were ICT industries—information, professional, scientific and technical services, and durable-goods manufacturing (computers). Although this industry group accounts for less than 4 percent of current-dollar GDP, ICT-producing industries accounted for 15.3 percent of real GDP growth.

Source: U.S. Bureau of Economic Analysis

The revised estimates, which incorporate more accurate and detailed information on the industry composition of GDP growth, show that the goods-producing sector’s growth slowed in 2005, following strong growth in 2004. Real growth in the goods-producing sector accounted for about one-seventh of the 3.2 percent real GDP growth in 2005, compared to almost one-fourth in 2004. The largest growth was seen in durable-goods manufacturing (4.9 percent) and construction (3.9 percent) in 2005.

In 2005, price growth accelerated in the private good-producing sector, while prices in the private services-producing sector showed a slight deceleration.

The private goods-producing sector showed significant price growth of 6.1 percent in 2005, nearly double its 3.3 percent growth in 2004.  This strong growth was led by large petroleum-related price increases in the mining and manufacturing industry groups.  Although the mining industry group accounts for less than 2 percent of current-dollar GDP, it contributed nearly one-fifth to overall GDP price growth.  Manufacturing, which restrained GDP price growth in 2003 and 2004, accounted for over one-tenth of GDP price growth in 2005. 

Source: U.S. Bureau of Economic Analysis

Source: U.S. Bureau of Economic Analysis


* Percentage-point contributions do not sum to the percent change in Annual growth in the chain-type Price Index for GDP because the contribution of “not allocated by industry” is excluded.

Other highlights of the revised estimates include:

• The value added price indexes of ICT-producing industry group continued to decrease (-4.3 percent) in 2005, largely due to price declines in the computer and electronic products manufacturing industry (-12.9 percent).

• Construction was the only private goods-producing industry with stronger growth (3.9 percent) in 2005.  Nondurable-goods manufacturing turned down to -1.3 percent in 2005 after a 4.9 percent increase in 2004.

• Four of the 10 major industry groups within the services-producing sector show stronger growth in 2005, led by professional and business services. 

Revisions

The revised 2005 estimates were prepared using the full integrated industry accounts methodology; the previously-published 2005 estimates were based on an abbreviated methodology. In addition, the revised estimates for 2003-2005 incorporate revised and newly-available source data, including BEA estimates of final demand and industry returns to labor and capital from the 2006 annual revision of the national income and product accounts (NIPAs), as well as revised price data from the U.S. Bureau of Labor Statistics, and revised annual survey data from the U.S. Census.

Revisions to growth in real value added include:

• In 2005, as shown in Table A, the largest revision to percent change—across major industry sectors—was to the information-communication-technology-producing industries (ICT), revised up 1.4 percentage points.  Revisions to 2005 are available only at the major-sector level.

• In 2004, the largest revision to percent change in real value added was to the private goods-producing sector.  This sector was revised up 1.0 percentage point, reflecting large upward revisions to petroleum and coal products and chemical products.

• Additionally in 2004, the private services-producing sector was revised down 0.8 percentage points.  This revision was broad-based across industries.  Among the largest revisions, real growth was revised down in the administrative and support services industry group and in the amusements, gambling, and recreational industries group.

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 estimates of gross domestic product (GDP) by industry for 2006 will be released on April 24, 2007 at 8:30 A.M. EDT.