(In a Few Cool Charts)
In 2018, the U.S. business economy was $37 trillion, representing the total revenue generated by private companies. While GDP was $20 trillion, GDP strips out intermediate goods (those products used in the eventual production of a final product) providing an incomplete view of total industry revenues. The U.S. business economy most closely resembles U.S. gross output, but even that measure has adjustments to revenue.
Where is the Growth?
Over the past 5 years, the U.S. business economy has grown 3.2% annually for a total growth of $5.4 trillion. Yet, growth on an absolute and percentage basis was very uneven across sectors. Services contributed over 60% of total absolute growth at $3.5 trillion. Construction led in percentage growth at 7.5% annual growth, with services at 5.4%, and retail at 3.8%. The rest of the sectors lagged in growth at between -1% to 1% annual growth.
Sector Absolute Growth
Sector Annual Growth
What are the Hot & Cold Industries?
Below are the 5-year revenue growth percentages for the subsectors. Lodging construction led subsector growth at 137%, followed by online retailers at 70%. Wheat and barley led subsector declines at -50% and -44%. The data is sourced from the Census Bureau and Kentley Insights. Since there isn't any recent data, mining subsectors are not represented.