New GDP Estimates for 2008

The Bureau of Economic Analysis this morning published 2008 estimates of real gross domestic product (GDP) by industry. A couple of highlights from the news release:

• No surprise that manufacturing led the downturn. Durable-goods manufacturing fell at an annual, inflation-adjusted rate for the first time since 2001. Goods-producing industry sectors accounted for only 18.9% of total GDP in 2008, which is the lowest since the BEA started collecting this data in 1947.
• Finance/insurance and retail declined for the first time since the early 1990s.
• Technology was a bright spot. Value added in technology industries increased by 9% in 2008. BEA notes that technology industries made up only 3.8% of total GDP in 2008, but accounted for 30% of real U.S. GDP growth between 2007 and 2008.

Unfortunately, we don't have comparable statistics for counties or the Austin-Round Rock metro area (BEA will publish 2007 data for metro areas in September). The latest data we have on the local manufacturing industry comes from IHS Global Insight. They estimate that manufacturing job losses in Austin-Round Rock will peak at -10.1% in 2009Q3.

Brian Kelsey