EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Tuesday, January 29, 2008

Technical:  Nicole Mayerhauser	(202) 606-9742     	           		   BEA 08-02
Media:	    Ralph Stewart	(202) 606-9690

                  Private Services-Producing Sector Continued to Lead Growth in 2006
                  Revised Statistics of Gross Domestic Product by Industry, 2004-2006

	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.

	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 http://www.bea.gov/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.



Table 1. Percent Changes in Real Value Added by Industry Group

    Gross domestic product                                            2.5    3.6    3.1     2.9

Private industries                                                    2.7    3.9    3.4     3.5
  Agriculture, forestry, fishing, and hunting                         7.5    6.7    4.9     0.9
  Mining                                                             -0.9    1.0   -2.4     6.1
  Utilities                                                           6.9    5.7   -2.2    -2.3
  Construction                                                       -2.0    0.3    2.7    -6.0
  Manufacturing                                                       1.1    5.6    1.0     2.9
    Durable goods                                                     2.6    5.8    4.9     6.0
Nondurble goods                                                      -0.8    5.3   -3.9    -1.0
Wholesale trade                                                       2.1    2.0    1.8     1.7
Retal trade                                                           3.9    2.6    6.1     5.0
  Transportation and warehousing                                      2.0    9.1    4.1     5.2
  Information                                                         3.0   11.7   11.5     7.2
  Finance, insurance, real estate, rental, and leasing                2.4    2.9    4.8     5.8
    Finance and insurance                                             3.5    1.1    6.2     9.8
    Real estate and rental and leasing                                1.7    4.1    4.0     3.4
  Professional and business services                                  4.4    4.1    4.0     3.8
    Professional, scientific, and technical services                  4.0    7.9    4.4     6.0
    Management of companies and enterprises                           2.8   -4.8    0.3    -2.4
    Administrative and waste management services                      6.4    1.1    5.6     2.7
  Educational services, health care, and social assistance            4.4    3.3    1.8     3.5
    Educational services                                              3.5    2.0   -0.3     1.1
    Health care and social assistance                                 4.5    3.5    2.1     3.9
  Arts, entertainment, recreation, accommodation, and food services   3.1    3.8    1.3     3.1
    Arts, entertainment, and recreation                               1.9    3.0    0.0     3.8
    Accommodation and food services                                   3.5    4.1    1.8     2.8
  Other services, except government                                   2.0    0.2   -0.6    -0.3
Government                                                            1.3    0.5    0.7     0.4
  Federal                                                             2.4    0.9    0.2    -0.1
  State and local                                                     0.8    0.2    0.9     0.7

Addenda:
  Private goods-producing industries 1                                0.6    4.0    1.3     0.8
  Private services-producing industries2                              3.3    3.9    4.0     4.2
  Information-communications-technology-producing industries 3        7.2   11.4   11.3    11.7

1. Consists of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing.
2. Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information;
   finance, insurance, real estate, rental, and leasing; professional and business services; educational
   services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food
   services; and other services, except government.
3. Consists of computer and electronic products (within durable-goods manufacturing); publishing industries
   (includes software) and information and data processing services (within information); and computer
   systems design and related services (within professional, scientific, and technical services).

Source: U.S. Bureau of Economic Analysis


Table 2. Contributions to Annual Percent Changes in Real Gross Domestic Product by Industry Group

                                                                       2003    2004    2005    2006
    Gross domestic product                                             2.5     3.6     3.1     2.9

Private industries                                                     2.31    3.42    2.96    3.02
  Agriculture, forestry, fishing, and hunting                          0.07    0.07    0.05    0.01
  Mining                                                              -0.01    0.01   -0.04    0.11
  Utilities                                                            0.13    0.12   -0.05   -0.05
  Construction                                                        -0.10    0.01    0.13   -0.30
  Manufacturing                                                        0.15    0.68    0.12    0.35
    Durable goods                                                      0.19    0.40    0.33    0.40
Nondurble goods                                                       -0.04    0.28   -0.21   -0.05
Wholesale trade                                                        0.13    0.12    0.11    0.10
Retal trade                                                            0.27    0.18    0.40    0.32
  Transportation and warehousing                                       0.06    0.26    0.12    0.15
  Information                                                          0.13    0.51    0.50    0.32
  Finance, insurance, real estate, rental, and leasing                 0.49    0.60    0.98    1.19
    Finance and insurance                                              0.28    0.08    0.48    0.77
    Real estate and rental and leasing                                 0.21    0.52    0.50    0.42
  Professional and business services                                   0.50    0.46    0.46    0.44
    Professional, scientific, and technical services                   0.26    0.52    0.30    0.41
    Management of companies and enterprises                            0.05   -0.09    0.01   -0.05
    Administrative and waste management services                       0.18    0.03    0.16    0.08
  Educational services, health care, and social assistance             0.34    0.26    0.14    0.27
    Educational services                                               0.03    0.02    0.00    0.01
    Health care and social assistance                                  0.31    0.24    0.14    0.26
  Arts, entertainment, recreation, accommodation, and food services    0.11    0.14    0.05    0.11
    Arts, entertainment, and recreation                                0.02    0.03    0.00    0.04
    Accommodation and food services                                    0.09    0.11    0.05    0.08
  Other services, except government                                    0.05    0.00   -0.01   -0.01
Government                                                             0.17    0.06    0.09    0.06
  Federal                                                              0.10    0.04    0.01   -0.01
  State and local                                                      0.07    0.02    0.08    0.06

Addenda:
  Private goods-producing industries 1                                 0.11    0.78    0.26    0.17
  Private services-producing industries 2                              2.20    2.64    2.70    2.86
  Information-communications-technology-producing industries 3         0.28    0.42    0.41    0.43

1. Consists of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing.
2. Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information;
   finance, insurance, real estate, rental, and leasing; professional and business services; educational
   services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food
   services; and other services, except government.
3. Consists of computer and electronic products (within durable-goods manufacturing); publishing industries
   (includes software) and information and data processing services (within information); and computer systems
   design and related services (within professional, scientific, and technical services).

Source: U.S. Bureau of Economic Analysis


Table 3. Percent Changes in Chain-Type Price Indexes for Value Added by Industry Group

                                                                      2003    2004    2005    2006
     Gross domestic product                                            2.1     2.9     3.2     3.2

Private industries                                                     1.8     2.8     3.0     2.8
  Agriculture, forestry, fishing, and hunting                         11.5    16.5   -13.7    -3.5
  Mining                                                              35.8    18.4    34.9     9.6
  Utilities                                                           -0.8     3.3     6.2    12.1
  Construction                                                         5.0     8.4     9.8    10.3
  Manufacturing                                                       -0.6    -0.5     2.9     1.5
    Durable goods                                                     -2.9    -1.1    -0.7    -1.0
Nondurble goods                                                        2.5     0.3     7.9     4.8
Wholesale trade                                                        1.3     5.7     3.5     3.5
Retal trade                                                            0.5     0.7    -1.4    -0.6
  Transportation and warehousing                                       1.9    -0.2    -0.1     2.2
  Information                                                         -1.7    -2.9    -3.5    -2.1
  Finance, insurance, real estate, rental, and leasing                 2.4     3.0     2.2     2.2
    Finance and insurance                                              1.5     3.9     1.9     1.4
    Real estate and rental and leasing                                 2.9     2.4     2.4     2.7
  Professional and business services                                   0.6     3.0     4.4     3.5
    Professional, scientific, and technical services                   0.0     0.2     3.0     2.5
    Management of companies and enterprises                            3.5    12.9    11.4     5.7
    Administrative and waste management services                       0.4     3.6     3.5     4.6
  Educational services, health care, and social assistance             2.7     3.5     3.1     2.7
    Educational services                                               3.7     6.1     5.5     5.0
    Health care and social assistance                                  2.6     3.1     2.7     2.4
  Arts, entertainment, recreation, accommodation, and food services    1.4     3.2     3.5     3.8
    Arts, entertainment, and recreation                                2.7     3.0     3.3     3.5
    Accommodation and food services                                    0.9     3.3     3.6     3.9
  Other services, except government                                    3.0     3.1     5.8     4.9
Government                                                             4.6     4.7     4.4     4.7
  Federal                                                              4.9     5.9     4.6     4.9
  State and local                                                      4.5     4.1     4.4     4.6

Addenda:
  Private goods-producing industries 1                                 3.2     3.7     5.9     4.1
  Private services-producing industries 2                              1.4     2.5     2.2     2.5
  Information-communications-technology-producing industries 3        -5.7    -6.1    -4.1    -3.8

1. Consists of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing.
2. Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information;
   finance, insurance, real estate, rental, and leasing; professional and business services; educational
   services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food
   services; and other services, except government.
3. Consists of computer and electronic products (within durable-goods manufacturing); publishing industries
   (includes software) and information and data processing services (within information); and computer systems
   design and related services (within professional, scientific, and technical services).

Source: U.S. Bureau of Economic Analysis