New Report Documents Increased Role of Transportation in National Economy

Contact BTS 8-00 Carole Zok BTS 202-366-5694 Ann Lawson BEA 202-606-9462

Monday, July 10, 2000 -- The most up-to-date picture of transportation services shows that these services contributed 60 percent more to the U.S. economy than is shown by traditional economic accounts.

A report, jointly issued by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) and the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA), shows that transportation services contributed $378 billion to the national economy in 1996, the latest year for which figures are available, $142 billion larger than the estimate from traditional accounts. The transportation sector grew by 21 percent from 1992, the only other year for which comparable figures are available.

The estimates are the latest from the Transportation Satellite Accounts (TSA’s), which provide more detailed information on transportation than do traditional economic accounts. For example, the transporting of goods from a grocery company’s warehouses to its retail outlets by the company’s own trucking fleet is included in retailing in traditional economic accounting systems but is included in transportation in the TSA’s.

"The updated and valuable information on the transportation sector resulted from the joint efforts of BTS and BEA to use new analytical approaches," said BTS director Dr. Ashish Sen. "We present an updated and detailed picture of all transportation activities in relation to the rest of the U.S. economy and what industries are large users of transportation."

"These accounts show how the government can take advantage of individual agencies’ strengths, such as BTS’s expertise in the transportation industries and related issues and BEA’s expertise in economic accounting and data resources, with minimal bureaucratic constraints," said BEA director, Dr. Steven Landefeld. "The TSA’s provide estimates of the full magnitude of transportation services in the U.S. economy – estimates that are crucial in assessing the benefits of public investments in transportation infrastructure."

The TSA's provide answers to such questions as: What is the contribution of transportation to the economy? Which industries are large users of transportation? What goods and services do industries purchase to support transportation operations?

The information from the TSA’s is presented in four matrix tables that are available for free in compressed files on BEA’s web site (www.bea.doc.gov).