US Industrial Sector

By: EconomyWatch   Date: 30 April 2010

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US industrial sector plays a pivotal role in regulating economic performance of the nation. Poor performance of some of the major industries has pulled back the US economy to some extent in recent times.

US industrial sector is comprised of a wide variety of industries like retail, steel, textile, aviation, paper, pharmaceuticals, fertilizer, shipping, real estate, engineering, construction, and many more. Performance of four major industry groups namely construction, mining, finance and insurance, and real estate and rental and leasing has not been satisfactory in the year 2007. As per the advance statistics for the year 2007 on Gross Domestic Product by industry, US finance and insurance sector may be held responsible for almost half of the slowdown.   The Bureau of Economic Analysis has released information on US industries in its recently published advance statistics on GDP by industry. Major highlights of this report are as follows:

  • Finance and insurance sector has recorded a decline in real growth for the first time in 2007 since the year 1992. In 2006 real growth rate of this sector was 9.8%.
  • Growth rate (real) of real estate and rental and leasing sector has declined from 3.4% in 2006 to 2.1% in 2007.
  • Construction industry has recorded a slowdown of 12.1% in 2007
  • In 2007 growth rate of mining industry has been lower than 0.1%, while the rate was 6.1% in previous year.
  • Real growth rate of private services-producing sector has recorded a decline from 4.2% in 2006 to 3.2% in 2007.

In contrast, there are a number of sectors that have performed well in the 2007 fiscal. Among these, IT sector is worth mentioning. This sector recorded a growth rate of nearly 13% in 2007 and accounted for almost 22.3% of the real economic growth of the country. Along with this fishing, agriculture, hunting and forestry sectors have jointly recorded a growth rate of 26.9% in 2007 and have helped played a major role in growth process of the United States.

 


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