Value Added: Other Sectors

Think of it this way

It is the catch-all drawer, and it is full.

What is Value Added: Other Sectors?

Everything that does not fit in the seven previous lines: construction, transportation and warehousing, energy and utilities, agriculture, mining, leisure and hospitality, private education and other services. It is calculated as the difference from the total, so the chart adds up by construction.

How to read Value Added: Other Sectors

It is large —on the order of a third of GDP— and should not be read as a rounding residual: it is a bin with real sectors inside, each too small to deserve its own line in a chart of eight.

What Value Added: Other Sectors means for the market

Little on its own, because it mixes things that move in opposite directions: construction is cyclical and energy follows commodities.

Where the money flows

GDP can be measured in three ways that give the SAME figure: by spending (who buys), by production (who makes it) and by income (who earns it). This version uses the second: the value added of each industry, which is what it produces minus what it bought from others to produce it. Subtracting those purchases is what avoids counting twice the steel that goes into a car. The “By spending” version of the same chart splits the total the other way, which is why none of its lines match these: they do not measure different things, they divide the same thing differently.

What to watch in Value Added: Other Sectors

If part of this block really interests you, let us know and we will break it out into its own line.

It does not measure liquidity: it is the part of GDP produced by this sector.