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New BEA Data Provide Insights on How Harsh Winter Impacted Industries in First Quarter

Real value added —a measure of an industry’s contribution to GDP—for agriculture, forestry, fishing, and hunting declined 31 percent in the first quarter, reflecting a drop in the production of farm-type products, including livestock and dairy.

How much did the harsh winter weather affect the U.S. economy in the first quarter of this year?

We know that the economy, as measured by gross domestic product (GDP), contracted at an annual rate of 2.9 percent over January, February and March, the first quarterly decline in three years. But how were different industries affected and was weather a factor?  New data released today by the U.S. Bureau of Economic Analysis provide fresh insights on that front.

The economy’s downturn in the first quarter was widespread, with 19 of 22 major industry groups contributing to the drop in U.S. economic activity, the new BEA data show.  Some of the leading contributors to the downturn included industries that were impacted by the unusually harsh winter weather that hit most of the United States, including “agriculture, forestry, fishing, and hunting.”

Severe weather conditions can have both positive and negative (although mostly negative) effects on the Nation’s economic performance. For some industries this is intuitive, like “agriculture, forestry, fishing, and hunting” and “construction;” for other industries, like “mining,” and “nondurable-goods manufacturing,” the link may not be as intuitive.

Real value added —a measure of an industry’s contribution to GDP—for agriculture, forestry, fishing, and hunting declined 31 percent in the first quarter, reflecting a drop in the production of farm-type products, including livestock and dairy. 

Construction fell almost 9 percent, reflecting a notable decline in nonresidential construction activity that began in January and continued through March; unusually cold and wet weather hampered construction activity. 

Perhaps somewhat surprising, the utility industry also contributed to the decline in GDP in the first quarter.  While demand for additional utilities, for example electricity generation, was evident with the severe winter weather, a surge in the costs of the inputs used by the utilities industry—things like energy, materials, and purchased services used in the production process—caused real value added to drop over 16 percent in the first quarter. 

Working to Ensure Public Safety Has Cutting-Edge, Reliable Communications

Working to Ensure Public Safety Has Cutting-Edge, Reliable Communications

Guest blog post by Stephen Fletcher, Associate Administrator, Office of Public Safety Communications, National Telecommunications and Information Administration (NTIA)

First responders know the deadly consequences of not having a communications network that is reliable and interoperable, a problem highlighted during the September 2001 terrorist attacks and Hurricanes Katrina and Sandy.  

The U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) is working to ensure our nation’s first responders have access to the most advanced communications when responding to an emergency or natural disaster.

NTIA is working closely with the First Responder Network Authority (FirstNet), an independent authority within the agency, as it works towards creating a nationwide public safety broadband network. In support of that effort, NTIA also is working to ensure states are prepared to take full advantage of this network once it is deployed.

NTIA awarded $116 million in grants to 54 states and territories to help plan for the broadband network that FirstNet will deploy. The State and Local Implementation Grant Program (SLIGP) is helping states prepare for the development and implementation of a more resilient broadband network, which will enable first responders to communicate efficiently and, consequently, save lives.

With the help of SLIGP funding, states and territories have begun to initiate collaborative relationships with public safety stakeholders through enhanced statewide governance, as well as by conducting education and outreach regarding the public safety broadband network, consulting with FirstNet, and identifying potential users. For example, FloridaNet, the team facilitating Florida’s broadband coverage needs, used SLIGP funding to host a listening tour – a series of eight, three-hour sessions across the state – and a webinar earlier this year to provide an overview of FirstNet and the role played by FloridaNet for law enforcement, fire, emergency medical services, emergency management, hospitals, Tribal Nations, and other stakeholders.

Going forward, NTIA will support its SLIGP grantees by engaging in outreach and technical assistance activities, such as holding webinars and conference calls, developing programmatic best practice documents, and conducting site visits. Through this work, and the work of many others, the United States is on its way to developing a public safety broadband network that stands tough in the face of crisis.

Supporting the Best Environment for U.S. Exporters

Supporting the Best Environment for U.S. Exporters

One way the International Trade Administration (ITA) supports U.S. exporters is through specific teams of specialists who focus on specific industry sectors.

From marine technology, to health care, to automobile manufacturing, ITA offers export support in a variety of sectors.

To promote professional development and to make sure our specialists stay on top of the latest business trends and opportunities, our teams come together to share lessons learned, study best practices, and discuss ways their industry is changing.

This month, the Environmental Technology team did just that.

Their week-long conference included various seminars which built on existing knowledge of export policies and emerging environmental technologies. These conferences benefit exporters because they keep the commercial service specialists up to date on the latest and greatest in their industry. The main focus of this year’s training sessions was ways the team can address pollution issues related to water, air, and soil, and to learn about new recycling technologies.

Other ways ITA supports environmental technology exporters are through programs such as;

The environmental sector is a large and growing industry. Environmental technologies make up a $735 billion global market with U.S. exports currently comprising about $45 billion of this market. Therefore there is much growth potential for U.S. envirotech exporters.

Industry-specific offices are just one of the ways ITA constantly works to make exporting easier for American businesses.

You can find out more about our industry teams and how they support exporters at export.gov. Or you can contact the Environmental Technology Team so they can help lead you in the right direction.