Annual Input-Output Accounts of the U.S. Economy, 1996.

Okubo, Sumiye O. ; Lawson, Ann M. ; Planting, Mark A. 等

IN DECEMBER 1999, the Bureau of Economic Analysis (BEA) released the 1996 annual input-output (I-O) accounts for the U.S. economy. These accounts are based on an update of the 1992 benchmark I-O accounts, and they reflect the recent comprehensive revision of the national income and product accounts (NIPA's).(1) The I-O accounts were prepared using 1996 estimates of industry and commodity output and the 1996 estimates of gross domestic product (GDP) from the NIPA revision.

This presentation of the 1996 annual I-O accounts marks the resumption of the regular preparation of annual I-O accounts and the refocusing of the resources that had been used to speed up the preparation of the 1992 benchmark I-O accounts. The last set of annual accounts, which presented estimates for 1987, was published in the April 1992 issue of the SURVEY OF CURRENT BUSINESS. The annual I-O accounts for 1997 are scheduled for release in the fall of 2000.

The annual I-O accounts provide estimates of the domestic production, the export and import of commodities (goods and services), the use of commodities by each industry, the commodity composition of GDP, and the industry distribution of value added. The annual I-O accounts are used in a variety of analytical and statistical contexts, including studies of interindustry relationships within the economy and as the basis for developing satellite accounts on particular aspects of the economy.

This article is presented in two parts. The first part describes the 1996 annual I-O tables, explains how the accounts can be used, and identifies some of the highlights. The second part describes the methodology that was used to prepare the 1996 annual I-O accounts.

1996 Annual I-O Accounts

The annual I-O tables

The 1996 annual I-O estimates are presented in five tables, beginning on page 48. These tables consist of a make table, a use table, a direct requirements table, and two total requirements tables. In addition, alternative make and use tables that are based on a classification of industries that more closely relates to the 1987 Standard Industrial Classification system have been prepared (see the box "Alternative Make and Use Tables" on page 43 and the box "Data Availability" on page 46).

The presentation of the annual I-O tables is generally the same as that of the benchmark I-O tables, but the information is less detailed. The annual I-O tables present summary estimates for 97 industries, while the benchmark I-O tables present more detailed estimates for 498 industries. The annual use and total direct requirements tables present estimates of total value added by industry, while the corresponding benchmark tables present detailed estimates of value added for compensation of employees, indirect business tax and other nontax liability, and other value added. In addition, the presentation of the annual I-O tables has been changed to incorporate the definitional and classificational changes, such as the change in the treatment of business and government expenditures for software, that were introduced in the 1999 comprehensive revision of the NIPA's.(2)

The make table shows the commodities that are produced by each industry (table 1), and the use table shows the inputs to industry production and the commodities that are consumed by final users (table 2). As discussed in the section on methodology, the estimates of commodity output and industry output in the make and use tables, and the estimates of final uses in the use table, are based on new source data. Most of the other estimates are based on updated relationships from the 1992 benchmark I-O accounts.(3)

[TABULAR DATA 1-2 NOT REPRODUCIBLE IN ASCII]

The three requirements tables are derived from the make and the use tables. The direct requirements table shows the amount of a commodity that is required by an industry to produce a dollar of the industry's output (table 3). The two total requirements tables show the production that is required, directly and indirectly, from each commodity (table 4) and from each industry (table 5) to deliver a dollar of a commodity to final users.

[TABULAR DATA 3-5 NOT REPRODUCIBLE IN ASCII]

The uses of the annual I-O accounts

The annual I-O accounts are an important tool for economic analysis because they show the interdependence among the producers and the consumers in the U.S. economy. The accounts can be used to estimate the direct and indirect effects of changes in CDP expenditures for final uses on industries and commodities. For example, the accounts can be used to estimate the effects of a change in Federal Government consumption and investment on industry and commodity output, and, supplemented with additional information, they can be used to estimate the effects of an increase in U.S. exports on employment.

The I-O accounts are used in several ways to prepare other economic statistics. For example, in the 1999 comprehensive NIPA revision, estimates from the 1996 annual I-O tables were used to estimate the 1996 commodity distribution for most of the components of personal consumption expenditures (PCE) for goods,(4) and estimates from the 1992 benchmark i-o accounts were used to prepare the estimates of final expenditures.(5) Detailed information from the 1996 annual I-O accounts will be used to update the 1992 transportation satellite accounts, the 1992 travel and tourism satellite accounts, and the regional I-O multiplier estimates.(6)

Highlights from the 1996 annual I-O accounts

These highlights are drawn from several analytical tables that are based on the 1987 and 1992 benchmark I-O accounts and the 1996 annual I-O accounts. Estimates of changes in current-dollar commodity output, exports, imports, and domestic supply provide insight on the changing structure of the U.S. economy and particularly on the increasing role of trade in recent years.(7) The growing importance of exports and imports is a factor for both rapidly growing, high-tech commodities--such as computer and office equipment and audio, video, and communications equipment--and some slower growing or declining basic-consumer commodities--such as apparel and footwear, leather, and leather products (table A).

[TABULAR DATA A NOT REPRODUCIBLE IN ASCII]

As the average annual growth in output for all commodities increased from 5.8 percent in 1987-92 to 6.8 percent in 1992-96, the commodity composition of growth changed significantly (table B). Of the 10 fastest growing commodities in 1992-96, only computer and data processing services was also among the top 10 in 1987-92. In 1992-96, five of the other fastest growing commodities are also considered high-tech commodities--electronic components and accessories; radio and TV broadcasting; special industry machinery and equipment; audio, video, and communication equipment; and computer and office equipment.

Table B.--Commodities with the Fastest
Growing Output, Selected Years
 1992-96
 Commodity output
Comm- Change Average
odity Description in level annual
number (millions rate of
 of growth
 dollars) (percent)

 All commodities 48,521 6.8

57 Electronic components
 and accessories 56,141 15.3
67 Radio and TV broadcasting 1,813 13.8
73A Computer and data processing
 services, including
 own-account software 35,801 13.6
 Special industry machinery
 and equipment 13,298 13.5
56 Audio, video, and communication
 equipment 27,018 11.2
50 Miscellaneous machinery,
 except electrical 13,155 11.2
51 Computer and office equipment 31,629 10.8
46 Materials handling
 machinery and equipment 4,124 10.6
44+45 Farm, construction, and
 mining machinery 15,410 10.6
59B Truck and bus bodies,
 trailers, and motor
 vehicles parts 39,945 10.5

 1992-96

 Commodity
 output Exports

 Rank by Change
 Description average in level
 annual (millions
 rate of of
 growth dollars)

All commodities ... 59,401

Electronic components
 and accessories 1 16,201
Radio and TV broadcasting 2 ...
Computer and data processing
 services, including
 own-account software 3 812
Special industry machinery
 and equipment 4 3,983
Audio, video, and communication
 equipment 5 6,881
Miscellaneous machinery,
 except electrical 6 1,310
Computer and office equipment 7 14,154
Materials handling
 machinery and equipment 8 567
Farm, construction, and
 mining machinery 9 3,389
Truck and bus bodies,
 trailers, and motor
 vehicles parts 10 7,619

 1992-96 1987-92
 Exports Commodity
 output
 Export
 change/ Average
 Description commodity annual
 output rate of
 change growth
 percent) (percent)

All commodities 6.6 5.8

Electronic components
 and accessories 28.9 8.7
Radio and TV broadcasting ... 3.5
Computer and data processing
 services, including
 own-account software .8 12.4
Special industry machinery
 and equipment 29.8 4.3
Audio, video, and communication
 equipment 25.5 4.4
Miscellaneous machinery,
 except electrical 10.0 4.7
Computer and office equipment 44.8 2.7
Materials handling
 machinery and equipment 13.7 2.4
Farm, construction, and
 mining machinery 22.0 3.5
Truck and bus bodies,
 trailers, and motor
 vehicles parts 19.1 3.5

 1987-92
 Rank by
 Description average
 annual
 rate of
 growth

All commodities ...

Electronic components
 and accessories 11
Radio and TV broadcasting 6
Computer and data processing
 services, including
 own-account software 1
Special industry machinery
 and equipment 53
Audio, video, and communication
 equipment 49
Miscellaneous machinery,
 except electrical 40
Computer and office equipment 71
Materials handling
 machinery and equipment 73
Farm, construction, and
 mining machinery 62
Truck and bus bodies,
 trailers, and motor
 vehicles parts 63

For four of the fast growing commodities--computer and office equipment; special industry machinery and equipment; electronic components and accessories; and audio, video, and communication equipment--increases in exports accounted for over one-fourth of the increase in domestically produced output in 1992-96. For all commodities, exports accounted for 6.6 percent of the increase in domestically produced output.

Of the 10 slowest growing commodities in 1992-96, tobacco products and water transportation were among the faster growing commodities in 1987-92 (table C). Declines in output of two commodities--ordnance and accessories and aircraft and parts--partly reflected declines in national defense spending. In addition, a drop in exports accounted for 39 percent of the decline in aircraft and parts and for 6 percent of the decline in ordnance and accessories. In coal mining, a decline in output primarily reflected a decline in coal prices, and it partly reflected slower growth in electric service utilities, which are major users of coal.

Table C.--Commodities with the Slowest Growing Output,
Selected Years

 1992-96
 Commodity output
Comm- Change Average
odity Description in level annual
number (millions rate of
 of growth
 dollars) (percent)

 All commodities 2,932,105 6.8

13 Ordnance and accessories -3,915 -4.7
7 Coal mining -4,009 -4.0
60 Aircraft and parts -11,524 -2.9
33+34 Footwear, leather, and leather
 products -531 -1.4
15 Tobacco products -365 -.2
39 Metal containers 60 .1
18 Apparel 2,518 .9
63 Ophthalmic and photographic
 equipment 1,038 1.1
65C Water transportation 2,473 1.8
01 Livestock and livestock
 products 6,690 1.8

 1992-96

 Commodity
 output Exports

 Rank by Change
 Description average in level
 annual (millions
 rate of of
 growth dollars)

All commodities ... 190,473

Ordnance and accessories 93 -249
Coal mining 92 -588
Aircraft and parts 91 -4,503
Footwear, leather, and leather
 products 90 222
Tobacco products 89 361
Metal containers 88 -39
Apparel 87 2,922
Ophthalmic and photographic
 equipment 89 73
Water transportation 85 780
Livestock and livestock
 products 84 -4

 1992-96 1987-92

 Exports Commodity
 output

 Export
 change/ Average
 Description commodity annual
 output rate of
 change growth
 percent) (percent)

All commodities 6.6 5.8

Ordnance and accessories 6.4 -4.6
Coal mining 14.7 1.1
Aircraft and parts 3.9 3.9
Footwear, leather, and leather
 products (1) 1.7
Tobacco products (1) 8.8
Metal containers (1) 2.4
Apparel 116.2 1.3
Ophthalmic and photographic
 equipment 470.6 4.0
Water transportation 31.7 7.3
Livestock and livestock
 products (1) 1.3

 1987-92
 Commodity
 output

 Rank by
 Description average
 annual
 rate of
 growth

All commodities ...

Ordnance and accessories 93
Coal mining 88
Aircraft and parts 58
Footwear, leather, and leather
 products 83
Tobacco products 10
Metal containers 72
Apparel 87
Ophthalmic and photographic
 equipment 57
Water transportation 17
Livestock and livestock
 products 86

(1.) The ratio is not meaningful, because the change in exports and the change in output move in opposite directions.

Of the 10 commodities with the fastest growth in domestic supply in 1992-96, only electronic components and accessories and "computer and data processing services, including own-account software," were also in the top 10 in 1987-92 (table D). Four of the top 10 commodities are durable goods--farm, construction, and mining machinery; materials handling machinery and equipment; metalworking machinery and equipment; and truck and bus bodies, trailers, and motor vehicles parts. These commodities, which are produced by "heavy" industries, grew relatively slowly in 1987-92, but they rebounded in 1992-96 as the result of the overall growth in the economy after the 1990-91 cyclical contraction.

Table D.--Commodities with the Fastest Growing Domestic
Supply, Selected Years

 1992-96
 Domestic supply
Comm- Change Average
odity Description in level annual
number (millions rate of
 of growth
 dollars) (percent)

 All commodities 2,954,247 6.2

57 Electronic components and
 accessories 60,642 15.5
67 Radio and TV broadcasting 1,813 13.8
73A Computer and data processing
 services, including
 own-account software 35,080 13.7
51 Computer and office equipment 45,473 12.9
44+45 Farm, construction, and mining
 machinery 15,260 12.1
48 Special industry machinery and
 equipment 12,216 11.8
46 Materials handling machinery
 and equipment 4,607 11.4
50 Miscellaneous machinery, except
 electrical 11,853 10.2
47 Metalworking machinery and
 equipment 13,455 10.2
59B Truck and bus bodies, trailers,
 and motor vehicles parts 40,449 10.1

 1992-96
 Domestic
 supply Imports
 Rank by Change
 Description average in level
 annual (millions
 rate of of
 growth dollars)

All commodities ... 249,566

Electronic components and
 accessories 1 20,613
Radio and TV broadcasting 2 ...
Computer and data processing
 services, including
 own-account software 3 224
Computer and office equipment 4 27,985
Farm, construction, and mining
 machinery 5 3,832
Special industry machinery and
 equipment 6 2,823
Materials handling machinery
 and equipment 7 1,102
Miscellaneous machinery, except
 electrical 8 464
Metalworking machinery and
 equipment 9 4,832
Truck and bus bodies, trailers,
 and motor vehicles parts 10 9,181

 1987-92
 Imports Domestic
 supply
 Import
 change/ Average
 Description commodity annual
 output rate of
 change growth
 percent) (percent)

All commodities 8.5 5.6

Electronic components and
 accessories 34.0 9.9
Radio and TV broadcasting ... 3.5
Computer and data processing
 services, including
 own-account software .2 12.2
Computer and office equipment 61.5 4.6
Farm, construction, and mining
 machinery 23.8 1.1
Special industry machinery and
 equipment 23.1 3.2
Materials handling machinery
 and equipment 23.9 .9
Miscellaneous machinery, except
 electrical 3.9 5.9
Metalworking machinery and
 equipment 35.9 3.0
Truck and bus bodies, trailers,
 and motor vehicles parts 22.7 3.5

 1987-92
 Domestic
 supply

 Rank by
 Description average
 annual
 rate of
 growth

All commodities ...

Electronic components and
 accessories 6
Radio and TV broadcasting 54
Computer and data processing
 services, including
 own-account software 1
Computer and office equipment 36
Farm, construction, and mining
 machinery 87
Special industry machinery and
 equipment 60
Materials handling machinery
 and equipment 88
Miscellaneous machinery, except
 electrical 25
Metalworking machinery and
 equipment 64
Truck and bus bodies, trailers,
 and motor vehicles parts 55

In 1992-96, increases in imports accounted for 62 percent of the increase in the domestic supply of computer and office equipment, for 34 percent of the increase in the domestic supply of electronic components and accessories, and for 36 percent of the increase in the domestic supply of metalworking machinery and equipment. For all commodities, imports accounted for 8.5 percent of the increase in the domestic supply.

Of the 10 slowest growing commodities in domestic supply in 1992-96, tobacco products, scientific and controlling instruments, ophthalmic and photographic equipment, aircraft and parts, and water transportation were among the faster growing in 1987-92 (table E).

Table E.--Commodities with the Slowest Growing Domestic Supply,
Selected Years

 1992-96
 Domestic supply
Comm- Change Average
odity Description in level annual
number (millions rate of
 of growth
 dollars) (percent)

 All commodities 2,954,247 6.2

13 Ordnance and accessories -5,601 -7.3
60 Aircraft and parts -17,883 -6.0
07 Coal mining -3,532 -3.9
39 Metal containers 206 .4
15 Tobacco products 589 .4
65C Water transportation 811 .9
62 Scientific and controlling
 instruments 8,039 1.9
16 Broad and narrow fabrics, yarn
 and thread mills 3,806 2.4
01 Livestock and livestock products 9,179 2.5
63 Ophthalmic and photographic
 equipment 3,041 2.7

 1992-96
 Domestic Imports
 supply

 Rank by Change
 Description average in level
 annual (millions
 rate of of
 growth dollars)

All commodities ... 249,566

Ordnance and accessories 93 138
Aircraft and parts 92 -441
Coal mining 91 153
Metal containers 90 88
Tobacco products 89 -564
Water transportation 88 -895
Scientific and controlling
 instruments 87 4,683
Broad and narrow fabrics, yarn
 and thread mills 86 -11
Livestock and livestock products 85 359
Ophthalmic and photographic
 equipment 84 2,422

 1992-96 1987-92
 Imports Domestic
 supply
 Import
 change/ Average
 Description commodity annual
 output rate of
 change growth
 percent) (percent)

All commodities 8.5 5.6

Ordnance and accessories (1) -3.5
Aircraft and parts 2.5 4.3
Coal mining (1) 1.9
Metal containers 42.7 2.3
Tobacco products (1) 6.7
Water transportation (1) 9.5
Scientific and controlling
 instruments 58.3 4.5
Broad and narrow fabrics, yarn
 and thread mills (1) 1.4
Livestock and livestock products 3.9 1.2
Ophthalmic and photographic
 equipment 79.6 4.4

 1987-92
 Domestic
 supply

 Rank by
 Description average
 annual
 rate of
 growth

All commodities ...

Ordnance and accessories 93
Aircraft and parts 45
Coal mining 77
Metal containers 75
Tobacco products 20
Water transportation 8
Scientific and controlling
 instruments 38
Broad and narrow fabrics, yarn
 and thread mills 83
Livestock and livestock products 82
Ophthalmic and photographic
 equipment 41

(1.) The ratio is not meaningful, because the change in imports and the change in domestic supply move in opposite directions.

Changes in final uses PCE, private investment, and government consumption expenditures and gross investment--also affected the relative rates of growth in domestic supply. In 1992-96, reductions in national defense spending contributed directly to the &dines in the domestic supply of ordnance and accessories, aircraft and parts, and scientific and controlling instruments. The slow growth in scientific and controlling instruments also reflected the &dine in aircraft and parts, because it is an important intermediate input in the production of aircraft. The step-up in private investment contributed directly to the strong increases in "computer and data processing services, including own-account software"; computer and office equipment; farm, construction, and mining machinery; special industry machinery and equipment; materials handling machinery and equipment; and metal working machinery and equipment.

Methodology for the 1996 Annual I-O Accounts

The 1996 annual I-O accounts are based on both the 1992 benchmark I-O accounts and on the most recently revised NIPA's. The 1996 estimates incorporated the definitional, classificational, and statistical changes that were introduced in the 1999 comprehensive revision of the NIPA'S, including a definitional change in the treatment of business and government expenditures for software. Business and government purchases of software (except software embedded in other equipment) that were previously treated as intermediate purchases by business or as government consumption expenditures are now treated as investment. The costs--the intermediate inputs and the value-added inputs--that are associated with the production of own-account software are also treated as investment.(8) In the I-O accounts, these costs are added to the gross output of the computer services industry (industry 73A).(9) These and other changes were incorporated into the 1996 annual I-O estimates to make them more consistent with the NIPA's.

The methodology used to prepare the 1996 annual estimates is similar to that used for the 1992 benchmark estimates, but the annual estimates are based on less comprehensive and less detailed source data. For the annual estimates for which data were unavailable, the relationships from the 1992 benchmark accounts were extrapolated to 1996.

The annual I-O estimates are prepared in five steps: (1) The output total for each industry and commodity is calculated; (2) the commodity composition of intermediate inputs for each industry is estimated; (3) the domestic supply of each commodity is estimated; (4) the commodity compositions of the GDP expenditure components for PCE, gross private fixed investment, and government consumption and investment expenditures are derived; and (5) the table is balanced. In the rest of this section, for each of these steps, the procedures and source data used to prepare the 1996 annual estimates are compared with those used to prepare the 1992 benchmark estimates.

Industry and commodity output totals

For most industries, source data are available to estimate 1996 industry output at the same level of detail as that used for the 1992 benchmark accounts. For manufacturing, trade, and most service industries, the source data for the 1996 estimates are based on sample surveys, whereas the source data for the benchmark estimates were based on more complete and detailed data from the quinquennial economic censuses. For agriculture, insurance, and government enterprises and for major parts of transportation, communications, utilities, finance, and real estate, the source data used for the 1996 estimates are comparable to those used for the benchmark estimates. For the industries for which annual source data at the benchmark level of detail are not available, aggregated industry source data are used to extrapolate the industry output estimates. Table F summarizes by major industry division the number of I-O industries and the number of industry extrapolators available for the 1996 estimates; table G shows the data sources for these estimates.

Table F.--Annual I-O Industry Extrapolators and Commodity Extrapolators and Price Indexes, 1996

 Industries
 Number
 with
 Industry/commodity group Total con-
 num- current
 ber extra-
 polators

 Total 780 758
Agriculture products 21 21
Minerals 25 25
Construction 57 57
Manufacturing products 436 436
Transportation, communication,
 and utilities 40 33
Trade 63 63
Finance 10 10
Services 86 71
Other 41 41
Noncomparable imports 1 1

 Commodities
 Number
 with Num-
 Industry/commodity group Total con- ber
 num- current with
 ber extra- price
 polators indexes

 Total 4,663 4,076 2,122
Agriculture products 73 73 53
Minerals 66 66 25
Construction 63 63 54
Manufacturing products 3,668 3,663 1,792
Transportation, communication,
 and utilities 82 47 48
Trade 231 2 2
Finance 119 92 27
Services 229 13 105
Other 124 49 15
Noncomparable imports 8 8 1

Table G.--Principal Source Data for 1996 Industry and Commodity Output

 Commodity and industry Source data for extrapolation

Agriculture, forestry, and
fisheries:

 01 Livestock and livestock Cash receipts from marketings
 products and inventory change from USDA.

 02 Other agricultural products Cash receipts from marketings
 and inventory change from USDA.

 03 Forestry and fishery For forestry, shipments of
 products logging camps and contractors
 from Census Bureau annual
 survey; for fishery products,
 wages and salaries from BLS.

 04 Agricultural, forestry, and Wages and salaries from BLS
 fishery services

Mining

 05+06 Metallic ores mining Physical quantity: produced
 times average price; for
 uranium, physical quantity and
 average price from DOE; for all
 others, quantities and prices
 from USGS.

 07 Coal mining Physical quantity produced times
 average price from DOE.

 08 Crude petroleum and Physical quantity produced times
 natural gas average price from DOE.

 09 Nonmetallic minerals mining Physical quantity produced times
 average price, both from USGS.

Construction:

 11 New construction including Value put in place from Census
 own-account construction. Bureau monthly construction
 survey; expenditures from
 Federal regulatory agencies and
 trade sources, Department of
 Agriculture surveys.

 12 Maintenance and repair Census Bureau annual surveys and
 construction including BLS survey of expenditures by
 own-account construction. owner occupants.

Manufacturing Shipments and inventory change
 from Census Bureau annual
 survey.

Transportation, communication,
and utilities:

 65A Railroads and related For railroad transportation,
 services; passenger ground total operating revenue for
 transportation. Class I railroads from trade
 source, and AMTRAK; for
 taxicabs, PCE; for local and
 suburban transit, trade source.

 65B Motor freight Census Bureau annual survey
 transportation and
 warehousing

 65C Water transportation For marinas, wages and salaries
 from BLS; for marine cargo
 handling, tonnage handled from
 Army Corps of Engineers; for
 other water transportation,
 trade sources.

 65D Air transportation Operating revenues of air
 carriers and of Federal Express
 from DOT and public sources.

 65E Pipelines, freight For pipelines, operating
 forwarders, and related revenues from trade source; for
 services freight forwarders and related
 services, freight revenues from
 Census Bureau annual surveys
 and trade sources; for
 arrangement of passenger
 transportation, Census Bureau
 annual survey.

 66 Communications, except Census Bureau annual survey
 radio and TV

 67 Radio and TV broadcasting Census Bureau annual survey

 68A Electric services For private utilities, revenues
 (utilities) from DOE. For rural
 cooperatives, revenues from
 USDA.

 68B Gas production and Revenues of gas pipeline and
 distribution (utilities) utilities from DOE

 68C Water and sanitary services Revenues from trade source

Wholesale and retail trade:

 69A Wholesale trade Census Bureau annual survey

 69B Retail trade Census Bureau annual survey

Finance, Insurance, and real
estate:

 70A Finance For priced services of
 depository and nondepository
 institutions (check collection,
 wire, transfer, clearing
 houses, etc.), from the DOTr;
 for imputed service charges,
 regulatory agencies and FED;
 for security and commodity
 brokers, receipts from SEC and
 interest from SEC.

 70B Insurance For insurance carriers from
 trade sources; for insurance
 agents, brokers, and services,
 receipts from IRS tabulations
 of business tax returns.

 71A Owner-occupied dwellings Census Bureau annual surveys

 71B Real estate and royalties For tenant-occupied dwellings,
 Census Bureau annual surveys;
 for royalties, IRS tabulations
 of business tax returns.

Services:

 72A Hotels and lodging places Receipts from Census Bureau
 annual survey

 72B Personal and repair Receipts from Census Bureau
 services (except auto) annual survey

 73A Computer and data For own-account software, BEA;
 processing services, for all other receipts, Census
 including own-account Bureau annual survey.
 software.

 73B Legal, engineering, Receipts from Census Bureau
 accounting, and related annual survey
 services.

 73C Other business and Receipts from Census Bureau
 professional services, annual survey
 except medical.

 73D Advertising Receipts from Census Bureau
 annual survey

 74 Eating and drinking places Receipts from Census Bureau
 annual survey

 75 Automotive repair and Receipts from Census Bureau
 services annual survey

 76 Amusements Receipts from Census Bureau
 annual survey

 77A Health services For hospitals, receipts from
 trade sources; other health
 services, receipts from Census
 Bureau annual survey.

 77B Educational and social For private education and social
 services, and membership services, BLS; for membership
 organizations. organizations, Census Bureau
 annual surveys.

Government enterprises:

 78 Federal Government For the post office, U.S. Postal
 enterprises Service receipts; for electric
 utilities, DOE; for other
 enterprises U.S. Budget
 documents.

 79 State and local government For electric utilities, DOE, for
 enterprises other enterprises Census
 annual surveys.

 80 Noncomparable imports No domestic measures of industry
 and commodity output

 81 Scrap, used and secondhand Census Bureau annual surveys
 goods

 82 General government industry Employee compensation and
 consumption of fixed capital
 from BEA.

 83 Rest of the world adjustment No domestic measures of industry
 to final uses and commodity output

 84 Household industry Employee compensation from BLS

 85 Inventory valuation BEA
 adjustment

 Commodity and industry Price index

Agriculture, forestry, and
fisheries:

 01 Livestock and livestock Prices received by farmers from
 products USDA

 02 Other agricultural products Prices received by farmers from
 USDA

 03 Forestry and fishery For forestry, PPI's; for fishery
 products products, IPD for fish landed

 04 Agricultural, forestry, and Composite index of wages and
 fishery services salaries per employee from BLS,
 farm prices, and PPI's
Mining

 05+06 Metallic ores mining IPD for metallic minerals from
 DOE and USGS

 07 Coal mining IPD for coal from DOE

 08 Crude petroleum and IPD for crude petroleum and
 natural gas natural gas from DOE, except
 for natural gas liquids (PPI)
 09 Nonmetallic minerals mining from USGS

Construction:

 11 New construction including BEA price index for new
 own-account construction. construction

 12 Maintenance and repair BEA price index for maintenance
 construction including and repair construction
 own-account construction.

Manufacturing PPI's, BEA computer price index,
 BEA semiconductor price index,
 BEA digital telephone-switching
 equipment price index, and BEA
 price indexes based on COD

Transportation, communication, prices paid for military
and utilities: equipment

 65A Railroads and related For railroads, IPD for freight
 services; passenger ground and passenger ton-miles from
 transportation. trade source; for taxicabs,
 CPI; for intercity buses, IPD
 for passenger revenue-miles
 from trade source; for school

 65B Motor freight buses, wages and salaries per
 transportation and employee from BLS; for other
 warehousing local transit, IPD for
 passenger trips from trade
 source IPD for freight
 ton-miles from trade source

 65C Water transportation For marinas, PCE price index;
 for marine cargo handling,
 wages and salaries per employee
 from BLS; for other water
 transportation, composite index
 of PPI's and BEA price indexes

 65D Air transportation IPD for revenue passenger miles
 and freight ton-miles from DOT

 65E Pipelines, freight For pipelines, IPD for ton miles
 forwarders, and related from trade source. For
 services arrangement of passenger
 transportation and freight
 forwarders, PPI; for related
 services, wages and salaries
 per employee from BLS

 66 Communications, except For cellular telephone services,
 radio and TV PCE price index; for other
 telephone services, PPI

 67 Radio and TV broadcasting For advertising, cost indexes
 from trade sources. For cable
 television, PPI

 68A Electric services PPI
 (utilities)

 68B Gas production and IPD for BTU's from trade sources
 distribution (utilities)

 68C Water and sanitary services CPI

Wholesale and retail trade:

 69A Wholesale trade For all except equipment rental
 by manufacturers sales offices,
 sales price index by
 kind-of-business computed from
 PPI's; for equipment rental, BEA
 capital stock price index

 69B Retail trade Sales price index by
 kind-of-business computed
 from PPI's

Finance, Insurance, and real
estate:

 70A Finance For imputed service charges,
 CPI price index; for priced
 services, CPI for personal
 financial services; for
 security and commodity brokers,
 IPD from SEC and trade sources;
 for other services, GDP IPD

 70B Insurance For health and life insurance,
 PCE price indexes. For all
 other insurance, BEA composite
 price index of IPD for workers
 compensation and CPI for auto
 and property insurance; for
 agents, brokers, and services,
 insurance carrier composite
 price indexes weighted by
 commissions from trade sources

 71A Owner-occupied dwellings CPI

 71B Real estate and royalties For nonfarm business rental and
 property management, rental
 rate per square foot from trade
 source; for condominium
 association fees and for home

Services: maintenance and repair
 services, CPI; for all other,
 BEA price indexes

 72A Hotels and lodging places Room-rate index from trade
 source

 72B Personal and repair CPI
 services (except auto)

 73A Computer and data For prepackaged software, BEA
 processing services, price index; for computer
 including own-account equipment rental, BEA capital
 software. stock price index; for custom
 programming and own-account
 software, BEA own-account
 software price index; for all
 others, wages and salaries per
 employee from BLS

 73B Legal, engineering, For legal services, CPI; for
 accounting, and related accounting services, PCE
 services. price index; for engineering
 and related services, PPI
 and wages and salaries per
 employee from BLS

 73C Other business and CPI
 professional services,
 except medical.

 73D Advertising Cost indexes by type of media
 from trade sources

 74 Eating and drinking places CPI

 75 Automotive repair and CPI
 services

 76 Amusements CPI

 77A Health services For hospitals, PPI; for other
 health services, PPI; for
 physicians services, CPI and
 HCFA index of input prices for
 other services

 77B Educational and social PCE price index
 services, and membership
 organizations.

Government enterprises:

 78 Federal Government For U.S. Postal Service and for
 enterprises Federal electric utilities,
 PPI; for other enterprises,
 BEA composite price index

 79 State and local government For electric utilities, PPI; for
 enterprises transit, composite price index
 based on PCE price indexes for
 private transit; for other
 enterprises, BEA composite
 price index

 80 Noncomparable imports BLS import price indexes

 81 Scrap, used and secondhand PPI
 goods

 82 General government industry BEA price indexes

 83 Rest of the world adjustment n.a.
 to final uses

 84 Household industry BEA price index based on BLS
 prices

 85 Inventory valuation n.a.
 adjustment

BEA Bureau of Economic Analysis

BLS Bureau of Labor St. Statistics

CPI Consumer Price Index (BLS)

DOC U.S. Department of Commerce

DOD U.S. Department of Defense

DOE U.S. Department of Energy

DOT U.S. Department of Transportation

DOTr U.S. Department of the Treasury

FED Federal Reserve Board

FCC Federal Communications Commission

HCFA Health Care Financing Administration

ICC Interstate Commerce Commission

IPD Implicit price deflator (BEA)

IRS Internal Revenue Service

NOAA National Oceanic and Atmospheric Administration

NRPC National Railroad Passenger Corporation

PCE Personal consumption expenditures (BEA)

PPI Produce' Price Index (BLS)

SEC Securities and Exchange Commission

USDA U.S. Department of Agriculture

USGS U.S. Geological Survey (Office of Minerals)

n.a. Not applicable.

For most commodities, source data are available to estimate 1996 commodity output at the same level of detail as that used for the 1992 benchmark accounts, and the data used for these estimates are from the same sources as those used to estimate industry output. For commodities without a commodity extrapolator, the commodity output is estimated using the industry output extrapolator and the 1992 benchmark commodity composition of industry output. This procedure is based on the assumption that the proportions of commodities produced by industries were constant from 1992 to 1996.

Commodity composition of intermediate inputs

The 1996 estimates of the composition of intermediate inputs used by each industry are based on 1992 benchmark relationships, with adjustments for changes in relative prices and other factors. First, each industry's 1996 output, valued in 1992 dollars, is estimated using an industry price index that is calculated by weighting commodity price indexes with the commodity composition of each industry's output. Generally, the number of price indexes available for commodities is fewer than the number of commodities; for commodities for which a price index is unavailable, an aggregate price index is applied to multiple commodities (tables F and G).(10)

Second, each industry's 1996 output, valued in 1992 dollars, is multiplied by that industry's 1992 direct requirements per dollar of output to obtain 1996 intermediate inputs valued in 1992 dollars. This procedure is based on the assumption that the 1996 composition of an industry's inputs per dollar of its output valued in 1992 constant dollars is unchanged from that in the 1992 benchmark accounts. The results are then reflated to current-dollar values using commodity price indexes. For the benchmark estimates, source data for the commodity composition of intermediate inputs for each industry were available, primarily from the quinquennial economic censuses.

Finally, commodity taxes, transportation costs, and trade margins for each input are estimated. Commodity taxes are added to raise inputs in basic prices to producers' prices. Transportation costs and trade margins are estimated to provide the producer-value inputs of these commodities by industries, using rates based on 1996 commodity output and 1992 relationships.

Domestic supply

Domestic supply--the total value of goods and services available for consumption as intermediate inputs by industries or as PCE, gross private fixed investment, and government consumption and investment expenditures--is calculated as domestic commodity output plus imports less exports less the change in private inventories. Exports and imports in both the annual and benchmark I-O accounts are based on Census Bureau foreign trade statistics and the BEA international transactions accounts.(11) The 1996 change in private inventories by industry are from the NIPA'S, and the commodity composition of inventories held by industries are based on 1992 benchmark relationships.

Commodity composition of final uses excluding trade and change in private inventories

The 1996 annual estimates of the major expenditure components of final uses for PCE, gross private fixed investment, and government consumption and investment are based on the procedures used to estimate GDP in the NIPA's.(12)

The major differences between the source data and the estimating procedures used for the 1992 benchmark estimates and those used for the 1996 NIPA estimates by major GDP expenditure component are as follows:

* PCE goods--The 1996 estimates are extrapolated from the 1992 benchmark estimates using the retail-control method. For the 1992 benchmark estimates, the commodity-flow method was used.(13)

* PCE services--The 1996 estimates are extrapolated from the 1992 benchmark estimates using measures of gross output that are similar to those used for the 1996 estimates of industry and commodity output.

* Private investment in equipment and software--The 1996 estimates are extrapolated from the 1992 benchmark estimates using an abbreviated commodity-flow method.(14)

The initial estimates of the 1996 commodity composition of PCE and gross private fixed investment are based on the commodity-flow method. The initial estimates for government expenditures are extrapolated using 1992 benchmark relationships.

Balancing the table

For each commodity, the initial estimates of the commodity distribution of domestic supply to all intermediate industries, PCE, gross private fixed investment, and government consumption and investment expenditures are adjusted so that these shares of domestic supply are similar to the shares in the 1992 I-O benchmark accounts. These estimates are then further adjusted to reflect the 1996 estimates of final expenditure categories from the 1999 NIPA comprehensive revision. Value added by industry is estimated by subtracting the sum of intermediate inputs by industry from industry output.

An appendix and tables 1 through 5 follow.

Acknowledgments

Mark A. Planting supervised the preparation of the 1996 annual input-output (I-O) estimates. Sumiye O. Okubo, Associate Director for Industry Accounts, and Ann M. Lawson, Chief of the Industry Economics Division, provided overall guidance. Peter D. Kuhbach, Greg R. Linder, Demian J. McGarry, Will H. Nicolls, Robert S. Robinowitz, and Regina K. Villasmil prepared the estimates. Karen J. Horowitz provided valuable technical assistance. Bingsong S. Fang, Jiemin X. Guo, and Simon N. Randrianarivel of the Bureau of Transportation Statistics, U.S. Department of Transportation, also contributed to the preparation of the estimates.

The price indexes were prepared under the direction of Robert E. Yuskavage, with contributions by Felicia V. Candela, Peter J. Lee, Tameka R. Lee, Sherlene K. S. Lum, Kimberly A. Mourey, Brian C. Moyer, and Robert A. Sylvester.

Special thanks to Alan C. Lorish, Jr., Chief of the Computer Systems and Services Division, and to members of his staff--particularly Stephen P. Holliday, Janice E. Townsend, Tara Fogarty, and Ross Metzger--for their assistance in building the data-processing application used to prepare the 1996 annual I-O estimates.

(1.) For an overview of the I-O accounts, see Ann M. Lawson, "Benchmark Input-Output Accounts for the U.S. Economy, 1992: Make, Use, and Supplementary Tables," SURVEY OF CURRENT BUSINESS 77 (November 1997): 36-82; and "Benchmark Input-Output Accounts for the U.S. Economy, 1992: Requirements Tables," SURVEY 77 (December 1997): 22-47.

For information on the 1999 comprehensive revision of the NIPA's, see Eugene P. Seskin, "Improved Estimates of the National Income and Product Accounts for 1959-98: Results of the Comprehensive Revision," SURVEY 79 (December 1999): 15-43.

(2.) See Brent R. Moulton, Robert P. Parker, and Eugene P. Seskin, "A Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts: Definitional and Classificational Changes," SURVEY 79 (August 1999): 7-20.

(3.) "Final uses" in the input-output accounts are the same as the "product-side" components of GDP in the NIPA's.

(4.) Brent R. Moulton and Eugene P. Seskin, "A Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts," SURVEY (October 1999): 9.

(5.) Leon W. Taub and Robert P. Parker, "Preview of Revised NIPA Estimates for 1992 From the 1992 I-O Accounts," Survey 77 (December 1997): 11-13. The differences between the 1992 benchmark I-O accounts and the revised 1992 estimates from the 1999 comprehensive revision of the NIPA'S largely reflect the definitional change in the treatment of software in the NIPA'S and statistical changes, including the use of economic census data on inventories for construction and for mineral industries and the use of newly available source data, primarily final tabulations of State and local government expenditures from the 1992 Census of Governments.

(6.) The satellite accounts are based on the 1992 benchmark I-O accounts: See Bingsong Fang, Xiaoli Han, Ann M. Lawson, and Sherlene K.S. Lum, "U.S. Transportation Satellite Accounts for 1992," SURVEY 78 (April 1998): 16-27; and Sumiye Okubo and Mark A. Planting, "U.S. Travel and Tourism Satellite Accounts for 1992," SURVEY 78 (July 1998): 8-22. For a description of the regional input-output multiplier estimates, see U.S. Department of Commerce, Bureau of Economic Analysis, Regional Multipliers: A User Handbook for the Regional Input-Output Modeling System (RIMS II), Third Edition (Washington, Dc: U.S. Government Printing Office, 1997).

(7.) Domestic supply is calculated as domestic commodity output plus imports less exports less the change in private inventories.

(8.) Moulton, Parker, and Seskin, 8.

(9.) In the I-O accounts, these costs are "redefined"--subtracted from the inputs of businesses that produce own-account software and from government consumption expenditures and added to the inputs of the computer services industry. Own-account construction is treated similarly.

(10.) Slightly different estimates of intermediate consumption by industry results would have been obtained if the 1996 output and the resulting real intermediate consumption estimates had been reflated using chain-type price indexes like those used for most other BEA estimates. However, any such difference would not affect the allocation between final uses and intermediate inputs, because the allocations for final uses is based on the 1996 current-dollar NIPA estimates and the actual 1996 current-dollar commodity output.

(11.) Net exports in the I-O accounts and the NIPA's are equivalent.

(12.) See "Updated Summary NIPA Methodologies," SURVEY 78 (September 1998): 14-35 and Seskin, 15-43.

(13.) For a description of the retail-control method, see U.S. Department of Commerce, Bureau of Economic Analysis, Personal Consumption Expenditures, Methodology Paper No. 6 (Washington, DC: U.S. Government Printing Office, 1990): 41; for a description of the commodity-flow method, see Lawson, 39.

(14.) See "Updated Summary NIPA Methodologies," 20-21.

Alternative Make and Use Tables

An alternative set of make and use tables that is more closely based on the 1987 Standard Industrial Classification System (SIC) was also prepared (see the box "Data Availability" on page 46). The alternative tables conform more closely to the current sic establishment-based data collection system by showing the primary and secondary products in the industries that produce them. As a result, the industry definitions, which are used to determine the columns of the use table and the rows of the make table, may differ from those used in the traditional I-O tables.(1) For some industries, the differences may be significant. For example, auto repair output from the retail trade industry in the alternative I-O tables is only about 40 percent as large as auto repair industry output in the traditional I-O tables. Generally, the redefinitions affect the following industries: Manufacturing activities by nonmanufacturing industries--for example, bread making in the retail trade industry; trade activities by nontrade industries--for example, buying and selling excess materials from inventory by manufacturing establishments; and service activities by industries in which services are not primary--for example, eating-and-drinking-related activities in the hotels and lodging places industry. However, construction activities performed by nonconstruction industries are redefined to construction in both the traditional and alternative tables.

The commodity definitions, which are used to determine the rows of the use table and the columns of the make table, are the same as those used in the traditional tables. Because SIC-defined industries include heterogeneous input mixes and production processes, alternative total requirements tables are not prepared.

The alternative tables are particularly useful for comparisons of industry data from the accounts with other sic-based data, such as the data for gross product by industry and for capital stock that are prepared by BEA and the employment data that are prepared by the Bureau of Labor Statistics.

(1.) For a discussion of the I-O industry classification system used for the traditional tables, see Lawson, 46-47.

Data Availability

The estimates for 97 industries at the input-output two-digit level, including a discussion of the matrix algebra underlying the derivation of the tables and the alternative estimates of the make and use tables on an approximate 1987 Standard Industrial Classification basis, are available from BEA's Web site at <www.bea.doc.gov>; under "National" click on "Industry and wealth data," and look under "Input-Output data."

These estimates are also available for $20 on diskette--product number NDN-0247. To order, call the SEA Order Desk at 1-800-704-0415 (outside the United States, call 202-606-9666).

Appendix.--Classification of Industries in the Annual Input-Output Accounts

[An asterisk preceding a Standard Industrial Classification (SIC) code indicates that the SiC industry is included in more than one I-O industry.]

 I-O Related 1987 SIC
number I-O title codes

 AGRICULTURE, FORESTRY, AND FISHERIES

 01 Livestock and livestock products *01, *02
 02 Other agricultural products *01, *02
 03 Forestry and fishery products 081, 083, 091,
 097
 04 Agricultural, forestry, and fishery 0254, *0279, 071,
 services 072, 075, 076,
 078, 085, 092

 MINING

05+06 Metallic ores mining 101-6, *108, 109
 07 Coal mining 121-3, *124
 08 Crude petroleum and natural gas 131,132, *138
09+10 Nonmetallic minerals mining 141-7, *148, 149

 CONSTRUCTION

 11 New construction including own-account *108, *124, *138,
 construction *148, *15, *16,
 *17, 6552
 12 Maintenance and repair construction *138, *15, *16,
 including own-account construction *17

 MANUFACTURING

 13 Ordnance and accessories 348, 3761, 3795
 14 Food and kindred products 20
 15 Tobacco products 21
 16 Broad and narrow fabrics, yarn and 221-4, *226, 228
 thread mills
 17 Miscellaneous textile goods and floor 227, 229
 coverings
 18 Apparel 225, 231-6
 19 Miscellaneous fabricated textile 239
 products
20+21 Lumber and wood products 24
22+23 Furniture and fixtures 25
 24 Paper and allied products, except 261, 262, 263,
 containers 267
 25 Paperboard containers and boxes 265
 26A Newspapers and periodicals 271, 272
 26B Other printing and publishing 273-9
 27A Industrial and other chemicals 281, 286, 289
 27B Agricultural fertilizers and chemicals 287
 28 Plastics and synthetic materials 282
 29A Drugs 283
 29B Cleaning and toilet preparations 284
 30 Paints and allied products 285
 31 Petroleum refining and related 29
 products
 32 Rubber and miscellaneous plastics 30
 products
33+34 Footwear, leather, and leather 31
 products
 35 Glass and glass products 321-3
 36 Stone and clay products 324-9
 37 Primary iron and steel manufacturing 331, 332, 339,
 3462
 38 Primary nonferrous metals 333-6, 3483
 manufacturing
 39 Metal containers 341
 40 Heating, plumbing, and fabricated 343, 344
 structural metal products
 41 Screw machine products and stamping 345, 3465-9
 42 Other fabricated metal products 342, 347, 349
 43 Engines and turbines 351
44+45 Farm, construction, and mining 352, 3531-3
 machinery
 46 Materials handling machinery and 3534-7
 equipment
 47 Metalworking machinery and equipment 354
 48 Special industry machinery and 355
 equipment
 49 General industrial machinery and 356
 equipment
 50 Miscellaneous machinery, except 359
 electrical
 51 Computer and office equipment 357
 52 Service industry machinery 358
 53 Electrical industrial equipment and 361, 362
 apparatus
 54 Household appliances 363
 55 Electric lighting and wiring equipment 364
 56 Audio, video, and communication 365, 366
 equipment
 57 Electronic components and accessories 367
 58 Miscellaneous electrical machinery 369
 and supplies
 59A Motor vehicles (passenger cars and 3711
 trucks)
 59B Truck and bus bodies, trailers, and 3713-5
 motor vehicles parts
 60 Aircraft and parts 372, 3764, 3769
 61 Other transportation equipment 3716, 373-5,
 3792, 3799
 62 Scientific and controlling instruments 381,382, 384,
 387
 63 Ophthalmic and photographic equipment 385, 386
 64 Miscellaneous manufacturing 39

 TRANSPORTATION, COMMUNICATION, AND
 UTILITIES

 65A Railroads and related services; 40, 41, 474
 passenger ground transportation
 65B Motor freight transportation and 42
 warehousing
 65C Water transportation 44
 65D Air transportation 45
 65E Pipelines, freight forwarders, and 46, 472, 473, 478
 related services
 66 Communications, except radio and TV 481,482, 484,
 489
 67 Radio and TV broadcasting 483
 68A Electric services (utilities) 491, 4931
 68B Gas production and distribution 492, 4932, 4939
 (utilities)
 68C Water and sanitary services 494-7

 WHOLESALE AND RETAIL TRADE

 69A Wholesale trade 50, 51
 69B Retail trade 52-7, 59

 FINANCE, INSURANCE, AND REAL ESTATE

 70A Finance 60-2, 67 (exclud-
 ing 6732)
 70B Insurance 63, 64
 71A Owner-occupied dwellings
 71B Real estate and royalties 65 (excluding
 6552)

 SERVICES

 72A Hotels and lodging places 70
 72B Personal and repair services 72, 762-4
 (except auto)
 73A Computer and data processing services 737
 73B Legal, engineering, accounting, and 81, 871,872, 89
 related services
 73C Other business and professional 732-6, 738, 769,
 services, except medical 8731, 8732,
 8734, 874
 73D Advertising 731
 74 Eating and drinking places 58
 75 Automotive repair and services 75
 76 Amusements 78, 79
 77A Health services 074, 80
 77B Educational and social services, and 6732, 82-4, 86,
 membership organizations 8733

 SPECIAL INDUSTRIES

 78 Federal Government enterprises (1)
 79 State and local Government (1)
 enterprises
 80 Noncomparable imports (2)
 81 Scrap, used and secondhand goods (3)
 82 General government industry (4)
 83 Rest of the world adjustment to (5)
 final uses
 84 Household industry (6)
 85 Inventory valuation adjustment (7)

(1) The SIC assigns codes to activities regardless of whether the establishment is owned by a private firm or a government agency. In the I-O accounts, SIC codes are used only to classify private activities.

(2) Noncomparable imports include imported services that are not commercially produced in the United States and goods and services that are produced abroad and used abroad by U.S. residents--for example, U.S. Federal Government defense spending abroad.

(3) Scrap is secondary product of many industries, and used goods are sales and purchases typically between final uses. Industry output is zero because there is no producing industry. The sales are shown as negative values in the use table.

(4) Industry output is defined as the compensation of employees and consumption of fixed capital of general government agencies. The compensation of employees engaged in the production of own-account software is included in computer and data processing services.

(5) The commodity entries include adjustments among PCE and government expenditures to eliminate counting the expenditures by foreign residents in both exports and PCE or government expenditures.

(6) Industry output is defined as the compensation of domestic household workers.

(7) The inventory valuation adjustment removes inventory profits and losses from business income.