US Industry Sectors

By: EW World Economy Team   Date: 28 April 2011

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EW World Economy Team

The World Economy team tracks changes to the economies of every country in the world and updates the

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The US is one of the most technologically advanced economies in the world, leading the Global Innovation Index and coming in 9th for the World Bank’s Knowledge Economy Index. As such, they also lead the world in industries such as manufacturing and finance, and are among the top three nations in industries such as commercial aircrafts and automobiles production.

Despite remaining at the forefront of most industries, the 2008 financial crisis significantly weakened a number of US industries as well. 2008 to 2010 saw three years of negative industrial production growth rate for the US. At the same time other countries such as China, Japan and the EU have caught up and overtaken the US in numerous industries. China, for example, is now the leader in coal, lettuce, rice, pork, beer and wind energy production as well as high technology exports.

US Industry Sectors

Performance of the US economy is driven by the diverse industry sectors. The US federal government takes a number of policy measures to facilitate the economic prosperity of US business firms. Mining, finance and insurance, manufacturing, real estate, food services and accommodation, transportation and warehousing, information technology, construction, educational services, wholesale trade, healthcare services, scientific, professional and technical services and many other services come under the purview of US business. 

Agriculture and the industrial sector made up 1.2 percent and 19.6 percent of US’s GDP in 2010 respectively. This percentage can be relatively deceiving. The US is not only the third largest agricultural producer in the world behind China and India, but is also the leading industrial power in the world.

Agriculture is a vital part of US economy and society. According to the last census of agriculture in 2007, there were 2.2 million farms in the US - covering an area of 922 million acres. Farmers are also one of the major political lobbyists in the US as they are primarily responsible for the country’s food demands. Among US agricultural products include wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; and forest products.

The industrial sector on the other hand is highly diversified and technologically advanced; comprising of industries such as petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber and mining. Use of state-of-the-art technology distinguishes its industries from other industrial powers of the world.

Finally, services constituted 79.2 percent of the US GDP. The US is home to the largest and most influential financial markets in the world including major stock and commodities exchanges like NASDAQ, NYSE, AMEX, CME, and PHLX. The NYSE alone is more than three times larger than any other stock market in the world.

Unfortunately, the 2008 financial crisis was a major blow to the real estate and financial industries . The fall of the sub-prime market was also detrimental to the overall services industry.

 

Read more on about the US economy, including forecasts and trade statistics on EconomyWatch below.


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