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MONDAY December 15, 2008

Finance and Insurance Led Slowdown in 2007


Revised Statistics of Gross Domestic Product by Industry

A sharp slowdown in finance and insurance, a further contraction in construction, and a deceleration in durable-
goods manufacturing were the leading contributors to the economic slowdown in 2007, according to revised
statistics of real gross domestic product (GDP) by industry from the Bureau of Economic Analysis.

Annual Growth in Real GDP


! In the services sector, growth in 5.0 GDP
finance and insurance slowed to 0.1 4.0
4.4 Private services-producing sector
3.9
percent in 2007, down from 6.3 4.0 3.6 Private goods-producing sector
percent in 2006. 2.9 2.8
3.2
2.9
3.0 2.7

! In the goods sector, construction 2.0


2.0

P e rc e n t
continued to decline, dropping 11.2
percent in 2007 after falling 4.1 1.0 0.6
percent in 2006, reflecting the further
0.0
decline in residential building.
-1.0 -0.7
! Durable-goods manufacturing slowed
to 4.8 percent from 8.1 percent. Eight -2.0
2004 2005 2006 2007
out of 11 durable-goods industries
decelerated.
Source: U.S. Bureau of Economic Analysis

Growth in the GDP price index slowed in 2007, reflecting slowing price growth across both the goods and
services sectors.

Annual Growth in Prices


! In the goods sector, slower growth in 7.0
6.5 GDP
prices for construction made the Private services-producing sector
6.0
largest contribution to the slowdown Private goods-producing sector
in the GDP price index in 2007. 5.0

4.0
! Prices accelerated sharply in 4.0 3.7
P ercen t

3.3 3.2 3.2


agriculture reflecting sharp increases 2.9
2.7 2.7
3.0 2.5
in grain and livestock prices. 2.4

2.0
1.8

! In the services sector, utilities made


the largest contribution to the 1.0

slowdown in the GDP price index. 0.0


2004 2005 2006 2007

Source: U.S. Bureau of Economic Analysis

BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.

NOTE. Advance statistics of gross domestic product (GDP) by industry for 2008 will be released on April 28, 2009.

Contact: Ralph Stewart 202–606–9690 Bureau of Economic Analysis, U.S. Department of Commerce