Revised statistics on the industry distribution of real gross domestic product (GDP), released today by the U.S. Bureau of Economic Analysis, show that the private services-producing sector continued to lead overall GDP growth in 2006, increasing 4.2 percent, while growth in the private goods-producing sector slowed to 0.8 percent. Overall growth of the U.S. economy decelerated slightly in 2006 to 2.9 percent from 3.1 percent in 2005. These statistics for 2006 incorporate more accurate and more detailed information on the industry composition of GDP growth than was available for preparing the advance GDP-by-industry estimates released on April 24, 2007.

In 2006, growth in the private services-producing sector reflected strong increases in finance and insurance industries of 9.8 percent and in professional, scientific, and technical services industries of 6.0 percent. These two industry groups accounted for over one-third of real GDP growth in 2006, up from one-quarter of overall growth in 2005.

NOTE: These statistics incorporate new (2006) and revised (2005) data from the 2006 Annual Survey of Manufactures (ASM) released by the U.S. Census Bureau on an accelerated schedule in November 2007. These data were not available at the time of the annual revision of the National Income and Product Accounts (NIPAs), which was released in July 2007. These ASM data and the other key source data for GDP will be incorporated in the July 31, 2008 release of the NIPAs.

Growth in the private goods-producing sector was mixed in 2006, reflecting continued strength in durable goods manufacturing industries and an upturn in mining industries, but a downturn in construction industries. Durable goods manufacturing industries grew 6.0 percent, led by strong growth in the computer and electronic products industry, which showed double digit growth for the fourth consecutive year. Mining industries overall growth of 6.1 percent was widespread. Growth in these industry groups was largely offset by declines in construction industries of 6.0 percent and in nondurable goods manufacturing industries of 1.0 percent. The decline in construction reflected a downturn in 2006 of residential construction. The decline in nondurable goods manufacturing was widespread.

Information-communication-technology-producing industries (ICT) growth continued to exceed 11.0 percent for the third consecutive year in 2006. These industries account for less than 4 percent of current-dollar GDP, but they accounted for almost 15 percent of real GDP growth.

Prices

In 2006, overall GDP price growth was unchanged from 2005 at 3.2 percent. Price growth in the private services-producing sector accelerated to 2.5 percent in 2006 from 2.2 percent in 2005. Price growth in the private goods-producing sector decelerated to 4.1 percent in 2006 from 5.9 percent in 2005.

The slowdown in private goods-producing sector price growth in 2006 was led by a sharp slowdown in the value added price indexes of industries that were affected by the 2006 slowdown in petroleum and natural gas prices. The value added price index for mining industries, including the oil and gas extraction industry, slowed to 9.6 percent in 2006 from 34.9 percent in 2005. The value added price index for nondurable goods manufacturing industries, including the petroleum and coal products industry, decelerated to 4.8 percent in 2006 from 7.9 percent in 2005.

Revisions

The revised 2006 statistics were prepared using BEAs integrated industry accounts methodology; the previously-published 2006 estimates were based on an abbreviated methodology. The revised statistics for 2004-2006 incorporate revised and newly-available source data, including BEA estimates of final demand and industry returns to labor and capital from the 2007 annual revision of the National Income and Product Accounts (NIPAs), producer price data from the U.S. Bureau of Labor Statistics, and annual survey data on industry production from the U.S. Census Bureau.

Revisions to growth in real value added (Table A):

BEAs national, international, regional, and industry statistics; the Survey of Current Business; and BEA news releases are available without charge on BEAs 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.

NOTE: For more information on Annual Industry Accounts statistics for 2004-2006, see Annual Industry Accounts: Revised Statistics for 2004-2006 in the February 2008 issue of the Survey of Current Business, forthcoming and at /industry/index.htm.

Advance statistics of gross domestic product (GDP) by industry for 2007 will be released on April 29, 2008 at 8:30 A.M. EDT.