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                                                                                                                       TUESDAY April 29, 2008
                                       Downturn in Finance and Insurance Restrains Real
                                                     GDP Growth in 2007

In 2007, weakness in four industry groups: finance and insurance; real estate; construction; and mining
accounted for most of the slowdown in economic growth, according to preliminary industry accounts statistics
from the Bureau of Economic Analysis.


         Growth in the services sector slowed to 3.2
         percent in 2007, down from 4.2 percent in
         2006, mainly because of a downturn in                                                          Annual Growth in Real GDP
         finance and insurance and a deceleration in                            8.0                                            Private services-
         real estate and rental and leasing.                                    7.0                                            producing sector
                                                                                                                               Private goods-
                                                                                6.0
                                                                                                                               producing sector
         Real value added for the goods sector fell                             5.0                                            GDP




                                                                     Percent
         1.5 percent in 2007, compared with an                                  4.0
         increase of 0.8 percent in 2006; construction                          3.0
                                                                                2.0
         valued added fell 12.1 percent after falling
                                                                                1.0
         6.0 percent in 2006.                                                   0.0
                                                                               -1.0
         Information-communications-technology                                 -2.0
         industries increased 13.2 percent in 2007,                                              2003     2004      2005     2006         2007
         the fourth consecutive year of double-digit
         growth for these industries.



Growth in the GDP price index slowed in 2007, reflecting slowing value-added price growth for the private
goods-producing sector.

                                                                                                  Annual Percent Changes in Value-Added
         Prices in the goods sector rose 3.4 percent in                                                       Price Indexes
         2007, compared with 4.1 percent in 2006.                                          8.0                                 P rivate services-
                                                                                           7.0                                 pro ducing secto r
                                                                                                                               P rivate go o ds-
                                                                                           6.0
                                                                                                                               pro ducing secto r
         Price growth in the services sector slowed,                                       5.0                                 GDP
         primarily due to utilities, which increased 2.8
                                                                                Percent




                                                                                           4.0
         percent in 2007 after increasing 12.1 percent in                                  3.0
         the previous year.                                                                2.0
                                                                                           1.0
                                                                                           0.0
         A sharp upturn in price growth for agriculture
                                                                                          -1.0
         and forestry moderated the overall slowdown
                                                                                          -2.0
         in goods prices.
                                                                                                   2003     2004     2005     2006         2007




BEA data--including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
economic data for states, local areas, and industries--are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.

NOTE: These statistics incorporate data from the March 2008 update of the National Income and Product Accounts. They will be
revised in December 2008 when more accurate and detailed industry data become available. For more information on these GDP-by-
industry statistics, see the May, 2008 Survey of Current Business.

Contact: Ralph Stewart 202­606­9690                                                   Bureau of Economic Analysis, U.S. Department of Commerce