Question

Visit the Bureau of Economic Analysis Website and view the most recent GDP Quarterly report and write a response to what you find there. Be sure to mention specific details from the report and rely on ideas from the text.

Answer 1

Solution:
The Bureau of Economic Analysis released its GDP analysis report the first quarter of 2019.
The report has analysed the contribution of industrial sectors in Overall Real GDP.
According to the Report, 16 out of 22 Industry groups or Sectors, that are included in the report, contributed to overall 3.1% increase in Real GDP in first quarter.
Industry wise contribution are as follows :-
(1) The contribution by Retail & Trade industry is maximum. The Industry contributed 11.9% in first quarter owing to increase in retail from gasoline stations & pharmaceutical & drugs stores.
(2) The second highest contributor is Finance & Insurance industry with contribution of around 9.5% The reason is increase in insurance Carriers & its related services
(3) Nondurable goods sector contributed around 8.4% due to increase in production of petroleum & coal products. This is followed by Information Services with 4.5% Contribution.
(4) Healthcare Industry contributed around 6.2% in first quarter followed by education services with 4.3% contribution.
The Report also provides insights on Real gross output

Real Gross Output Measures industry's sales to Final Consumers and intermediate users. Intermediate users uses the products as raw material to produce final goods.

Real Gross output increased 1.6% in first quarter.Real Gross output for various sectors are as follows:

(1) Private goods producing sector showed an increase of 2.1% in real gross output

(2) Private services producing sector showed an increase of 1.3% in real gross output followed by government with increase in real gross output of about 0.3%.

In Real Gross Output indicator, only 14 industries out of 22 contributed to increase in Real gross output. Highest contributor is information services with 4.7% contribution. This is due to publishing industries growth which includes Softwares

Second highest contributor is Healthcare & Social Assistance with 7.1% contribution due to increase in hospitals and other healthcare services followed by Finance & Insurance with

4.2% contribution.

Overall the report showed that Retail Trade, Finance and Insurance, Healthcare & Information Services contributed to both real GDP and real gross output.