Pic-of-the-Week: Which Industries are Driving U.S. GDP Growth? (4/28/2014)

Broad-Based Growth – The recent release of quarterly Gross Domestic Product estimates by industry provide some helpful insight into the industry-level growth patterns driving U.S. economic activity. This week’s chart illustrates real GDP growth rates for the U.S. by industry in 2013.

So, which industries are driving growth? Currently, with the exception of government, most of them are. Growth is probably much more broad-based than you might suspect given the disappointing pace of growth in overall GDP since 2008. Agriculture continues to lead the way with a 16.4% gain, benefiting from continued high crop and livestock prices. But nearly all other industry sectors posted a 1% gain or better in 2013.

The group of lagging industries continues to be led by the Federal Government and State and Local Government sectors. Other weak industries include (private) Educational Services and Other Services.

Despite weak overall growth of 1.9% in 2013, the industry pattern suggests broad growth with few problem sectors remaining other than Government.