The real value/benefit added to the United States economy by the construction, manufacturing and mining sectors boomed in the first quarter of 2017, while insurance and financial sectors slumped. The data was released by the Bureau of Economic Analysis on Friday.
In total, the United States economy grew at a mere 1.4% (annual pace) in Q1 of 2017, which may not sound like much. However, the value added by the mining sector grew at an impressive annual rate of 21.6%. Manufacturing and construction did pretty well too in the first quarter, growing on a Year-over-Year basis by 4,7% and 5.6% respectively.
The value added to the US gross domestic product by an industry is a measure of the economic health by any metrics and it’s the equivalent of the (value of) goods, structures and values produced minus the (value of) structures, goods and values consumed. Mining increased by approximately 400% in Q1 of 2017 compared to 2016’s Q4 (5,2%), especially due to increases in gas and oil extraction, as well as Trump’s administration full support for the mining industry. The same story is true with regard to durable goods manufacturing, which grew from 2016’s Q4 0,7% to 4.4% in Q1 of 2017.
The growth of durable goods manufacturing in Q1 of 2017 is due to the increase in motor vehicles, parts, machinery, trailers and bodies manufacturing. While things the “real” economy were booming, the financial/insurance sector declined by 2.1%. Other declining sectors of the economy in Q1 of 2017 were agriculture, forestry, fishing&hunting, utilities, arts, entertainment, recreation, retail trade, accommodation and food services.
You know how you can you tell the real economy is doing great? The media will not talk about it. Donald Trump reversed almost all of Obama’s illegal executive orders which are very destructive and are hindering the economy. He also lightened burdensome and costly regulations on businesses. These are a very big accomplishments in themselves and they already have a positive effect on the real economy.