Integrated BEA/BLS industry-level production account: initial statistics for 2014 and revised statistics for 1998-2013.

Lyndaker, Amanda S.

On June 29, 2016, the industry-level production account for the United States was updated to include new statistics for 2014 and revised statistics for 1998-2013. In this ongoing collaboration between the Bureau of Economic Analysis (BEA) and the Bureau of Labor Statistics (BLS), gross domestic product (GDP) by industry data from BEA's industry economic accounts are combined with capital and labor hours data from the BLS Productivity Program to create an internally consistent production account. The account contains detailed data on output and inputs in current and constant prices as well as multifactor productivity by industry. (1) The foundations of this account are discussed in detail by Fleck and others. (2)

Subsequent updates to the statistics have expanded the account to incorporate the latest statistics released by both BEA and BLS. The underlying data for gross output, intermediate inputs, and value added are consistent with the results of BEA's 2015 annual revision of the industry economic accounts, released on November 5, 2015. (3) Data on capital and labor hours reflect revisions to the BLS measures of multifactor productivity released on June 22, 2015. (4) Revisions to the integrated account for 1998-2011 reflect revisions to capital and labor input hours from BLS. Revisions to the account for 2012-2013 reflect revisions to these series as well as revisions from the annual revision of BEA's industry economic accounts.

For 1998-2014, aggregate value added increased 1.92 percent per year on average (table 2). Increases in capital input accounted for 1.10 percentage points (about 57 percent), of aggregate growth growth in labor input accounted for 0.43 percentage point (about 22 percent), and increases in multifactor productivity accounted for 0.39 percentage point (about 20 percent). Comparing aggregate growth in 2009-2014 with that in 1998-2007 indicates that the majority of the difference in growth before and after the Great Recession can be attributed to a decline in the contribution of capital input. (5) These results are consistent with previously published statistics.

In addition to allowing a decomposition of the sources of growth for the economy as a whole, the integrated account tables, which are available on BEA's Web site, allow for more detailed decompositions. Users can identify the sources of growth in aggregate capital, labor, and integrated multifactor productivity by industry and by type of labor or capital asset.g

At the industry level, a large portion of the aggregate difference in the contribution of capital input over the two periods was driven by lower capital input contributions in real estate and rental and leasing, finance and insurance, and retail trade.

By type, the revised data show that almost half of the decrease in capital inputs in the post-recession period (2009-2014) relative to 1998-2007 was due to a 0.56 percentage point decrease in other capital and another third was due to a 0.30 percentage point decrease in information technology capital. (6)

Labor input contributed 0.82 percentage point to the 1.80 average percent change in real value added (45 percent of growth) over the recovery period, compared with a contribution of 0.61 percentage point to the 2.77 average percent change in the period preceding the Great Recession (22 percent of growth). The contribution of labor input in the durable-goods industry to aggregate real valued-added growth turned up, contributing 0.06 percentage point in the post-recession period after subtracting 0.11 percentage point before 2007. The contribution of noncollege labor to real value added growth in the post-recession period increased, compared with the contribution in the 1998-2007 period, while the contribution of college labor was basically unchanged. (7)

With this update to the account, the contribution of integrated multifactor productivity to aggregate value added growth for the 2009-2014 period was 0.15 percentage point lower than the 1998-2007 contribution, reflecting smaller contributions to growth by the durable-goods and nondurable-goods manufacturing sectors during the latter period. Previously published statistics covering 2009-2013 showed a small positive multifactor productivity contribution to growth (0.04 percentage point) during the recovery period. The 0.19 percentage point downward revision primarily reflects a downward revision to real GDP growth in 2013. At the industry level, the multifactor productivity contribution to growth for the finance and insurance industry was revised down 0.11 percentage point, which is consistent with a downward revision to real value added in 2013 for this industry from the annual revision to the industry economic accounts.

The following tables provide additional information on the sources of growth across industries. The underlying data are available on the industry accounts section of BEA's Web site.

Amanda S. Lyndaker of BEA prepared this report. Thomas F. Howells III and Jon D. Samuels of BEA and Lucy Eldridge, Steve Rosenthal, and Chris Sparks of BLS supervised the preparation of the statistics. Matthew E. Calby and Justin M. Harper of BEA and Randy Kinoshita of BLS contributed to the preparation of the statistics.

(1.) The industry-level production account and integrated multifactor productivity measures presented in this article reflect output that is consistent with GDP for the total economy. However, these measures differ in concepts and coverage from the official U.S. multifactor productivity measures from the Bureau of Labor Statistics. See the box "Data Availability."

(2.) Susan Fleck, Steve Rosenthal, Matthew Russell, Erich H. Strassner, and Lisa Usher, "A Prototype BEA/BLS Industry-Level Production Account for the United States," in Measuring Economic Sustainability and Progress, edited by Dale W. Jorgenson, J. Steven Landefeld, and Paul Schreyer (Chicago: University of Chicago Press, for the National Bureau of Economic Research).

(3.) Kevin B. Barefoot, Edward T. Morgan, Ksenia E. Shadrina, "The 2015 Annual Revision of the Industry Economic Accounts: Initial Statistics for the Second Quarter of 2015 and Revised Statistics for 2012-2014 and the First Quarter of 2015," SURVEY OF CURRENT BUSINESS 95 (December 2015).

(4.) See the release on the BLS Web site.

(5.) The Great Recession refers to the most recent recession, which lasted from December 2007 to June 2009, according to the Business Cycle Dating Committee of the National Bureau of Economic Research.

(6.) Other capital includes about 90 types of other capital equipment and structures, inventories and land.

(7.) College labor includes workers with a bachelor's degree and above; noncollege labor includes the remainder of workers.

Data Availability

Additional data tables for 1998-2014 for the integrated BEA/BLS industry-level production account, including industry contributions to the aggregate sources of growth and details on capital and labor by industry, are available on BEAs Web site. The GDP by industry accounts for 1947-2014--including gross output, intermediate inputs, and value-added statistics-- are also available on BEA's Web site. The official statistics on multifactor productivity are available on the BLS Web site.

Table 1. Growth in Aggregate Value Added and the Sources of Growth
[Average annual growth rates]

                                          1998-2014   1998-2007



 Value added (1)                          1.92         2.77
Capital input (2)                         1.10         1.53
 Information technology capital (3)       0.27         0.39
 R&D capital                              0.08         0.09
 Software capital                         0.17         0.23
 Entertainment originals capital          0.03         0.03
 Other capital                            0.54         0.78
Labor input (2)                           0.43         0.61
 College labor                            0.55         0.63
 Noncollege labor                        -0.11        -0.02
Integrated multifactor productivity (2)   0.39         0.63

                                         2007-2014  2007-2009



 Value added (1)                          0.84      -1.56
Capital input (2)                         0.54       0.66
 Information technology capital (3)       0.12       0.20
 R&D capital                              0.08       0.10
 Software capital                         0.09       0.11
 Entertainment originals capital          0.02       0.02
 Other capital                            0.23       0.23
Labor input (2)                           0.21      -1.32
 College labor                            0.44      -0.11
 Noncollege labor                        -0.23      -1.22
Integrated multifactor productivity (2)   0.09      -0.90

                                         2009-2014  2009-2014
                                                    less
                                                    1998-2007

 Value added (1)                          1.80       -0.98
Capital input (2)                         0.50       -1.03
 Information technology capital (3)       0.09       -0.30
 R&D capital                              0.07       -0.01
 Software capital                         0.09       -0.14
 Entertainment originals capital          0.02       -0.01
 Other capital                            0.22       -0.56
Labor input (2)                           0.82        0.20
 College labor                            0.65        0.02
 Noncollege labor                         0.16        0.18
Integrated multifactor productivity (2)   0.48       -0.15

(1.) Aggregate value-added growth is the sum of share-weighted
value-added growth by industry.
(2.) The contributions of labor, capital, and integrated multifactor
productivity are the Domarweighted sums of each industry's labor,
capital, or multifactor productivity contribution to industry output
growth.
(3.) Information technology (IT) capital consists of computer capital,
communications capital, and other IT capital.
NOTE. Integrated estimates of multifactor productivity differ from the
official estimates produced by the Bureau of Labor Statistics (BLS),
which are available on the BLS Web site.

Table 2. Sources of Industry Output Growth, 1998-2014
[Average annual growth rates]

                                             Growth    Contributions
                                             Output   Capital  Labor

Farms                                          1.00     0.16  -0.02
Forestry, fishing, and related activities     -0.13     0.52   0.71
Oil and gas extraction                         2.60    -0.05   0.20
Mining, except oil and gas                     0.06     0.65  -0.12
Support activities for mining                  7.04     0.48   2.52
Utilities                                     -0.37     0.67  -0.01
Construction                                  -0.90     0.20   0.12
Wood products                                 -1.12     0.02  -0.73
Nonmetallic mineral products                  -0.85     0.22  -0.43
Primary metals                                 0.24    -0.07  -0.52
Fabricated metal products                      0.25     0.10  -0.21
Machinery                                      0.47     0.14  -0.41
Computer and electronic products               3.62     0.46  -0.84
Electrical equipment, appliances, and
 components                                   -1.38    -0.03  -0.52
Motor vehicles, bodies and trailers, and
 parts                                         1.19     0.09  -0.30
Other transportation equipment                 1.81     0.23  -0.10
Furniture and related products                -1.67     0.11  -0.96
Miscellaneous manufacturing                    1.40     0.47  -0.30
Food and beverage and tobacco products         0.47     0.21   0.03
Textile mills and textile product mills       -4.45    -0.19  -1.36
Apparel and leather and allied products       -4.77    -0.09  -2.66
Paper products                                -1.03    -0.16  -0.53
Printing and related support activities       -2.00    -0.03  -1.19
Petroleum and coal products                    1.33     0.08  -0.02
Chemical products                              0.35     1.09  -0.12
Plastics and rubber products                  -0.38     0.12  -0.32
Wholesale trade                                2.73     0.95   0.15
Retail trade                                   1.98     0.88   0.14
Air transportation                            -1.03     0.09  -0.35
Rail transportation                            1.44     0.10  -0.26
Water transportation                           3.18    -0.09   0.22
Truck transportation                           1.20     0.41   0.04
Transit and ground passenger
transportation                                 1.33     0.47   0.62
Pipeline transportation                       -1.44     1.33  -0.03
Other transportation and support
activities                                     1.80    -0.11   0.26
Warehousing and storage                        6.32     0.36   1.36
Publishing industries, except internet
(includes software)                            1.61     0.88  -0.24
Motion picture and sound recording
industries                                     1.41     1.12   0.26
Broadcasting and telecommunications            4.33     1.60  -0.21
Data processing, internet publishing, and
other information services                     8.28     2.74  -0.27
Federal Reserve banks, credit
intermediation, and related activities         1.03     1.26   0.29
Securities, commodity contracts, and
investments                                    3.32     0.15   0.41
Insurance carriers and related activities      3.37     1.03   0.31
Funds, trusts, and other financial vehicles    3.25     0.24  -0.05
Real estate                                    2.55     1.30   0.06
Rental and leasing services and lessors
of intangible assets                           2.36     2.56  -0.07
Legal services                                -0.18     0.92   0.44
Computer systems design and related
services                                       4.76     0.18   2.05
Miscellaneous professional, scientific,
and technical services                         2.69     0.70   0.90
Management of companies and
enterprises                                    3.20     0.26   1.26
Administrative and support services            3.00     0.74   0.77
Waste management and remediation
services                                       1.57     0.16   0.51
Educational services                           2.74     0.21   1.62
Ambulatory health care services                3.10     0.20   1.50
Hospitals and nursing and residential
care                                           2.94     0.26   1.02
Social assistance                              3.13     0.12   2.05
Performing arts, spectator sports,
museums, and related activities                2.56     0.13   0.48
Amusements, gambling, and recreation
industries                                     2.29     0.61   0.63
Accommodation                                  1.28     0.79   0.05
Food services and drinking places              1.77     0.01   0.65
Other services, except government              0.33     0.42   0.18
Federal government                             1.57     0.60  -0.06
State and local government                     1.38     0.45   0.60

                                             Intermediate  Integrated
                                                             MFP

Farms                                          -0.33         1.19
Forestry, fishing, and related activities      -1.79         0.43
Oil and gas extraction                          1.08         1.37
Mining, except oil and gas                     -0.06        -0.42
Support activities for mining                   1.75         2.29
Utilities                                      -0.67        -0.35
Construction                                   -0.26        -0.96
Wood products                                  -0.86         0.44
Nonmetallic mineral products                   -0.43        -0.21
Primary metals                                  0.15         0.68
Fabricated metal products                       0.33         0.03
Machinery                                       0.37         0.37
Computer and electronic products               -1.88         5.88
Electrical equipment, appliances, and
 components                                    -1.54         0.70
Motor vehicles, bodies and trailers, and
 parts                                          0.50         0.89
Other transportation equipment                  1.32         0.37
Furniture and related products                 -0.72        -0.10
Miscellaneous manufacturing                     0.57         0.66
Food and beverage and tobacco products          0.34        -0.11
Textile mills and textile product mills        -3.22         0.32
Apparel and leather and allied products        -3.13         1.11
Paper products                                 -0.22        -0.12
Printing and related support activities        -2.10         1.32
Petroleum and coal products                     1.03         0.24
Chemical products                              -0.11        -0.51
Plastics and rubber products                   -0.39         0.21
Wholesale trade                                 1.25         0.38
Retail trade                                    0.99        -0.02
Air transportation                             -0.65        -0.12
Rail transportation                             1.00         0.60
Water transportation                            0.75         2.30
Truck transportation                            0.73         0.03
Transit and ground passenger
transportation                                  0.84        -0.61
Pipeline transportation                        -4.15         1.41
Other transportation and support
activities                                      1.66        -0.01
Warehousing and storage                         3.49         1.11
Publishing industries, except internet
(includes software)                            -0.14         1.10
Motion picture and sound recording
industries                                     -1.06         1.09
Broadcasting and telecommunications             1.76         1.17
Data processing, internet publishing, and
other information services                      5.07         0.74
Federal Reserve banks, credit
intermediation, and related activities         -0.50        -0.02
Securities, commodity contracts, and
investments                                     1.83         0.93
Insurance carriers and related activities       2.05        -0.02
Funds, trusts, and other financial vehicles     1.34         1.71
Real estate                                     0.72         0.47
Rental and leasing services and lessors
of intangible assets                            1.61        -1.74
Legal services                                  0.34        -1.88
Computer systems design and related
services                                        0.61         1.93
Miscellaneous professional, scientific,
and technical services                          1.25        -0.16
Management of companies and
enterprises                                     2.22        -0.55
Administrative and support services             0.59         0.90
Waste management and remediation
services                                        0.91        -0.01
Educational services                            1.39        -0.48
Ambulatory health care services                 1.14         0.27
Hospitals and nursing and residential
care                                            1.84        -0.18
Social assistance                               1.44        -0.48
Performing arts, spectator sports,
museums, and related activities                 1.35         0.60
Amusements, gambling, and recreation
industries                                      1.20        -0.14
Accommodation                                   0.41         0.02
Food services and drinking places               0.92         0.19
Other services, except government               0.93        -1.21
Federal government                              0.94         0.08
State and local government                      0.30         0.03

MFP Multifactor productivity
NOTE. Integrated estimates of multifactor productivity differ from the
official estimates produced by the Bureau of Labor Statistics (BLS),
which are available on the BLS Web site.

Table 3. Contributions to Aggregate Real Value-Added Growth
[Percentage points]

                                           1998-2014
                                      Value                   Integrated
                                      added  Capital  Labor    MFP

 Total economy                         1.92     1.10   0.43    0.39
Agriculture, forestry,
fishing, and hunting                   0.03     0.01   0.00    0.03
Mining                                 0.06     0.01   0.02    0.04
Utilities                              0.01     0.02   0.00   -0.01
Construction                          -0.05     0.02   0.01   -0.08
Durable goods                          0.22     0.04  -0.08    0.27
Nondurable goods                       0.00     0.06  -0.04   -0.02
Wholesale trade                        0.12     0.08   0.01    0.03
Retail trade                           0.09     0.08   0.01    0.00
Transportation and warehousing         0.03     0.01   0.01    0.01
Information                            0.20     0.13  -0.01    0.09
Finance and insurance                  0.20     0.11   0.04    0.04
Real estate and rental and leasing     0.29     0.25   0.01    0.04
Professional, scientific,
and technical services                 0.16     0.07   0.10   -0.01
Management of companies and
 enterprises                           0.03     0.01   0.04   -0.01
Administrative and waste management
 services                              0.09     0.03   0.03    0.03
Educational services                   0.02     0.00   0.02   -0.01
Health care and social assistance      0.16     0.02   0.14    0.00
Arts, entertainment, and recreation    0.02     0.01   0.01    0.00
Accommodation and food services        0.04     0.01   0.02    0.01
Other services, except government     -0.02     0.02   0.01   -0.05
Federal government                     0.05     0.05   0.00    0.01
State and local government             0.17     0.07   0.09    0.00
Addenda:
Private economy components:
 Information technology-producing
 industries                            0.29     0.04    0.01    0.24
 Information technology-using
 industries                            0.99     0.59    0.33    0.07
 Noninformation technology
 industries                            0.43     0.34    0.01    0.08

                                       1998-2007
                                      Value                   Integrated
                                      added  Capital  Labor    MFP

 Total economy                         2.77     1.53   0.61    0.63
Agriculture, forestry,
fishing, and hunting                   0.03     0.00   0.01    0.02
Mining                                 0.02     0.00   0.01    0.01
Utilities                              0.01     0.02   0.00    0.00
Construction                           0.00     0.05   0.09   -0.13
Durable goods                          0.36     0.05  -0.11    0.42
Nondurable goods                       0.07     0.05  -0.06    0.08
Wholesale trade                        0.22     0.12   0.03    0.07
Retail trade                           0.15     0.13   0.02    0.00
Transportation and warehousing         0.05     0.02   0.00    0.03
Information                            0.28     0.16  -0.01    0.12
Finance and insurance                  0.31     0.19   0.07    0.05
Real estate and rental and leasing     0.38     0.40   0.02   -0.04
Professional, scientific,
and technical services                 0.20     0.10   0.12   -0.02
Management of companies and
 enterprises                           0.01     0.01   0.03   -0.03
Administrative and waste management
 services                              0.13     0.04   0.04    0.04
Educational services                   0.02     0.00   0.03   -0.01
Health care and social assistance      0.17     0.02   0.14    0.00
Arts, entertainment, and recreation    0.02     0.01   0.01    0.00
Accommodation and food services        0.06     0.01   0.02    0.03
Other services, except government     -0.02     0.02   0.01   -0.06
Federal government                     0.06     0.05  -0.01    0.02
State and local government             0.25     0.08   0.14    0.02
Addenda:
Private economy components:
 Information technology-producing
 industries                            0.37     0.05  -0.02    0.34
 Information technology-using
 industries                            1.44     0.87   0.43    0.15
 Noninformation technology
 industries                            0.65     0.48   0.06    0.10

                                      2009-2014
                                      Value                   Integrated
                                      added  Capital  Labor    MFP

 Total economy                        1.80     0.50   0.82    0.48
Agriculture, forestry,
fishing, and hunting                  0.02     0.01   0.01    0.00
Mining                                0.11     0.03   0.04    0.04
Utilities                             0.02     0.02   0.00    0.00
Construction                          0.01    -0.02   0.03    0.00
Durable goods                         0.28     0.02   0.06    0.19
Nondurable goods                     -0.07     0.07   0.01   -0.15
Wholesale trade                       0.16     0.05   0.03    0.08
Retail trade                          0.10     0.03   0.04    0.04
Transportation and warehousing        0.06     0.01   0.05    0.00
Information                           0.14     0.08   0.01    0.06
Finance and insurance                 0.06     0.02   0.04    0.00
Real estate and rental and leasing    0.24     0.03   0.00    0.20
Professional, scientific,
and technical services                0.13     0.01   0.12    0.00
Management of companies and
 enterprises                          0.11     0.01   0.05    0.05
Administrative and waste management
 services                             0.11     0.02   0.08    0.01
Educational services                  0.01     0.00   0.02   -0.01
Health care and social assistance     0.11     0.02   0.14   -0.05
Arts, entertainment, and recreation   0.03     0.00   0.02    0.01
Accommodation and food services       0.08     0.00   0.05    0.03
Other services, except government     0.01     0.00   0.01   -0.01
Federal government                    0.02     0.03  -0.02    0.00
State and local government            0.06     0.05   0.01    0.00
Addenda:
Private economy components:
 Information technology-producing
 industries                           0.19     0.03   0.06    0.09
 Information technology-using
 industries                           0.92     0.24   0.52    0.15
 Noninformation technology
 industries                           0.62     0.15   0.23    0.24

                                     2009-2014 less 1998-2007
                                     Value                   Integrated
                                     added  Capital  Labor    MFP

 Total economy                        -0.98    -1.03   0.20   -0.15
Agriculture, forestry,
fishing, and hunting                  -0.01     0.01   0.00   -0.02
Mining                                 0.09     0.04   0.03    0.02
Utilities                              0.01     0.00   0.00    0.00
Construction                           0.01    -0.06  -0.06    0.13
Durable goods                         -0.09    -0.03   0.17   -0.23
Nondurable goods                      -0.14     0.02   0.07   -0.23
Wholesale trade                       -0.06    -0.07   0.01    0.01
Retail trade                          -0.05    -0.10   0.01    0.03
Transportation and warehousing         0.01    -0.01   0.05   -0.02
Information                           -0.13    -0.09   0.02   -0.07
Finance and insurance                 -0.25    -0.16  -0.03   -0.05
Real estate and rental and leasing    -0.14    -0.36  -0.02    0.24
Professional, scientific,
and technical services                -0.06    -0.09   0.01    0.02
Management of companies and
 enterprises                           0.10     0.00   0.03    0.07
Administrative and waste management
 services                             -0.01    -0.02   0.04   -0.03
Educational services                  -0.02     0.00  -0.01    0.00
Health care and social assistance     -0.06     0.00   0.00   -0.05
Arts, entertainment, and recreation    0.01    -0.01   0.00    0.01
Accommodation and food services        0.01    -0.01   0.03    0.00
Other services, except government      0.03    -0.02   0.00    0.05
Federal government                    -0.04    -0.02  -0.01   -0.02
State and local government            -0.19    -0.04  -0.13   -0.02
Addenda:
Private economy components:
 Information technology-producing
 industries                           -0.19    -0.02   0.08   -0.25
 Information technology-using
 industries                           -0.53    -0.63   0.10    0.00
 Noninformation technology
 industries                           -0.03    -0.33   0.17    0.13


MFP Multifactor productivity
NOTE. Aggregate value added growth for the total economy appears in the
top left corner of each panel with all other values representing
contributions to that total. Integrated estimates of multifactor
productivity differ from the official estimates produced by the Bureau
of Labor Statistics (BLS), which are available on the BLS Web site.