CHARTS: Mining once again one of biggest drivers of US economy
The real value added to the US economy by the mining, construction and manufacturing sectors spiked in the first quarter of 2017, in what is considered another clear sign of a reversal of fortunes in an industry that suffered in previous years from a sustained rout in commodities prices.
According to the latest data released by the Bureau of Economic Analysis, the US economy grew overall at an annual pace of just 1.4% in the first quarter. But the value added by the mining sector increased by a stunning annual rate of 21.6%, while construction and manufacturing also contributed significantly — 5.6% and 4.7% respectively.
“The first quarter growth primarily reflected increases in oil and gas extraction, as well as support activities for mining. This was the largest increase since the fourth quarter of 2014,” the report says.
The value brought by the agriculture, forestry, fishing and hunting, in contrast, dropped almost 40%. Among other industries that also declined during the quarter, according to the BEA data, were financial and insurance (-2.1%); utilities (-6.4%); retail trade (-3.6%); and arts, entertainment, recreation, accommodation, and food services (-0.9%).