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. capital and labor) is increasing or decreasing as a percentage of GDP. Changes in the composition of an industry’s current-dollar value added indicate whether the labor and capital shares for the industry are changing.
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