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Finance and insurance; wholesale trade; and information services were the leading contributors to the increase in U.S. economic growth in the third quarter of 2016. According to gross domestic product (GDP) by industry statistics released by the Bureau of Economic Analysis, 20 of 22 industry groups contributed to the overall 3.5% 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 9.0% in the third quarter, after decreasing 0.1% in the second quarter. The third quarter growth primarily reflected increases in Federal Reserve banks, credit intermediation, and related activities, as well as insurance carriers and related activities.
Wholesale trade increased 8.3%, after increasing 1.0%. This was the largest increase since the third quarter of 2014.
Information services increased 8.6%, after decreasing 0.2%, primarily reflecting an increase in the broadcasting and telecommunications industries.
Other highlights
Durable goods manufacturing increased 5.1% in the third quarter, after increasing 0.3% in the second. The third quarter growth primarily reflected increases in motor vehicles, bodies and trailers, and parts manufacturing, as well as computer and electronic products manufacturing.
Retail trade increased 2.6%, after decreasing 2.8%, primarily reflecting an increase in general merchandise stores.
Administrative and waste management services increased 5.7%, after increasing 1.1%. The third quarter growth primarily reflected an increase in administrative and support services, which includes industries like employment services and business support services.
Gross output by industry
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 in the third quarter. This reflected increases in real gross output for both the private goods- and services-producing sectors, as well as the government sector. Overall, real gross output increased in 19 of 22 industry groups.
Real gross output for durable goods manufacturing increased 2.8%, after decreasing 2.0% in the second quarter.
Information services increased 8.5%, after decreasing 2.3%. This was the largest increase since the third quarter of 2013.
Finance and insurance increased 3.0%, after increasing 6.0%. This was the fourth consecutive quarterly increase.
