Manufacturing, Finance, Construction Led 2009 Decline

Manufacturing, Finance, Construction Led 2009 Decline

Fifteen of 22 industry groups contributed to last year’s 2.4 percent drop in U.S. GDP, the government’s Bureau of Economic Analysis reported.

Downturns in durable-goods manufacturing, finance and insurance, and construction were the leading contributors to last year’s decline, according to the bureau’s industry-by-industry examination of influences on GDP.

Manufacturing value added -- a measure of an industry’s contribution to GDP -- fell 5.9 percent in 2009, after a 3.6 drop in 2008. Durable-goods manufacturing fell 7.5 percent, the first drop since 2001, after growing 0.3 percent in 2008. Nondurable-goods manufacturing fell 3.8 percent after dropping 8.2 percent in 2008.

Construction contracted for the fifth consecutive year, with a 9.9 percent drop in its value added. Finance and insurance value added dropped 2.7 percent in 2009 after rising 3.2 percent in 2008.

The private goods-producing sector contracted for the second straight year, falling 5.3 percent in 2009 after decreasing 2.5 percent in 2008. The private services-producing sector fell 1.9 percent. Value-added growth for the federal government and health care industries partially offset the overall downturn.

-- Contact Joseph Bonney at jbonney@joc.com.