Finance and insurance led growth in the third quarter
Finance and insurance; durable goods manufacturing; and information services were the leading contributors to the increase in U.S. economic growth in the third quarter of 2017. According to gross domestic product (GDP) by industry statistics released by the Bureau of Economic Analysis, 18 of 22 industry groups contributed to the overall 3.2 percent increase in real GDP in the third quarter.
For the finance and insurance industry group, real value added—a measure of an industry’s contribution to GDP—increased 14.7 percent in the third quarter, after decreasing 6.6 percent in the second quarter. This was the largest increase since the second quarter of 2009 and primarily reflected increases in securities, commodity contracts, and investments.
Durable goods manufacturing increased 7.5 percent, after increasing 2.9 percent. The third quarter growth primarily reflected increases in computer and electronic products manufacturing.
Information services increased 9.0 percent, after increasing 7.0 percent. The third quarter growth primarily reflected an increase in broadcasting and telecommunications. This was the largest increase since the fourth quarter of 2015.
Nondurable goods manufacturing decreased 4.1 percent in the third quarter, after increasing 3.5 percent in the second. The decrease was primarily attributed to a decrease in petroleum and coal products manufacturing.
Retail trade increased 6.3 percent, after increasing 5.6 percent. This primarily reflected increases in other retail, which includes building material and garden equipment and supplies dealers, nonstore retailers, and gasoline stations.
Professional, scientific, and technical services increased 2.7 percent, after increasing 5.1 percent. The third quarter increase was primarily attributed to an increase in computer systems design and related services.
Gross output by industry
Economy-wide, real gross output—principally a measure of an industry’s sales or receipts, which includes sales to final users in the economy (GDP) and sales to other industries (intermediate inputs)—increased 2.1 percent in the third quarter. This reflected an increase of 2.3 percent in real gross output for the private services-producing sector, an increase of 1.8 percent for the private goods-producing sector, and an increase of 1.5 percent for the government sector. Overall, 15 of 22 industry groups contributed to the increase in real gross output.
Real gross output for durable goods manufacturing increased 6.8 percent, after increasing 0.8 percent in the second quarter. This was the largest increase since the third quarter of 2014, and primarily reflected increases in other transportation equipment manufacturing and computer and electronic products manufacturing.
Retail trade increased 6.2 percent, after increasing 2.0 percent.
Information services increased 8.9 percent, after increasing 4.0 percent. The increase was primarily attributed to information and data processing services, which has increased for six consecutive quarters.