Goods-Producing Sector Fell Below 19% in 2008
In a previous CD post, I suggested that "Since fewer than 10% of all U.S. jobs are now in the manufacturing sector, should we continue to rely on industrial production as a key economic variable, when the manufacturing share of overall employment continues to decline to record low levels?"
The chart above using annual GDP data by sector from the BEA shows the downward trend in the private goods-producing sector, from 40% in 1947 to less than 19% in 2008. More reason that the importance of industrial production as an economic indicator has been declining over time. (Note: The BEA defines these two sectors as "private goods-producing" and "private services-producing," with the remaining percentage in the non-private or government sector.)
See related WSJ article "Nation’s Goods-Producing Sector Continues to Shrink"