Over 70% of what the U.S. produces is for personal consumption - more than $10 trillion of the $14.6 trillion 2010 GDP. That's because the U.S. has a lot of people within its borders, so U.S. companies have become very good at knowing what consumers want.
Nearly half (47%) of GDP is services, not products. These include everything from financial services to health care.
Goods or products are nearly one-fourth of the economy. These are further divided into two sub-categories. Non-durable goods are 16% of GDP. The three largest components of non-durable goods are food, clothing and fuel. Durable Goods, such as autos and furniture, is the smallest category, at only 7% of GDP.
Business investment, such as software, business equipment, and manufacturing, comprise 16% of economic output. It includes construction of housing and commercial real estate, but doesn't count real estate resales.
Government spending is 20% of total GDP, up from 17% in 2000. State and local government produce 12% of GDP. The Federal Government produces 8% of GDP, and two-thirds of this defense-related. (Source: U.S. Bureau of Economic Analysis, National Income and Product Accounts Tables, Table 1.1.5., Gross Domestic Product)
Imports and exports have opposite effects on GDP. Exports add, while imports subtract, from GDP. Imports are greater than exports, and so the net effect of trade is a deficit. Imports are growing faster than exports, thanks to jobs outsourcing in manufacturing.
A good way to compare GDP between countries is with GDP per capita. This divides the country's economic output by the number of people. It gives a good indication of how wealthy each person feels. Despite its enviable standard of living, the U.S. does not have the highest GDP per capita. In 2010, that distinction belonged to Qatar, which had $147,400 GDP per person.(Updated April 12, 2011)
GDP FAQ
- What Are the Components of GDP?
- What Is the Difference Between GDP and Growth Rate?
- What Is the Ideal Growth Rate?
- What Is a Recession?
- What Is a Depression?
