Manufacturing Economy Monitor

Manufacturing Share of U.S. GDP

Manufacturing contributes 9.4% of U.S. GDP as of Q1 2026, flat against a year earlier. That is $3.00T in value added at seasonally adjusted annual rates, per the Bureau of Economic Analysis. Output grew 6.6% year over year in dollar terms (+4.8% after inflation). Durable goods account for 53.7% of manufacturing output, nondurable goods 46.3%.

The current reading

  • Manufacturing value added is 9.4% of U.S. GDP as of Q1 2026; the annual share was 9.4% in 2025, versus 16.1% in 1997.
  • Value added runs at $3.00T per year (seasonally adjusted annual rate), up 6.6% year over year and up 4.8% after inflation.
  • Durable goods produced $1.56T of value added in 2025 (53.7% of manufacturing); nondurable goods $1.34T (46.3%).
  • Gross output (total factory revenue including purchased inputs) was $7.25T in 2025, about 2.5× value added; only value added belongs in a GDP comparison.

Largest industries and states

  • Largest subsectors by value added: Chemical Products ($578B), Food, Beverage, and Tobacco Products ($355B), Computer and Electronic Products ($318B), Other Transportation Equipment ($210B), Machinery ($205B).
  • Largest state manufacturing economies: California ($385B, 9.1% of the state economy), Texas ($332B, 11.4% of the state economy), Illinois ($133B, 11% of the state economy), Ohio ($132B, 13.7% of the state economy), Indiana ($131B, 24% of the state economy).

Frequently asked questions

  • What share of U.S. GDP is manufacturing? Manufacturing is 9.4% of U.S. GDP as of Q1 2026, measured as value added by the Bureau of Economic Analysis. The share was 16.1% in 1997, so the long-run trend is a declining share of a growing economy.
  • How big is U.S. manufacturing in dollars? U.S. manufacturing value added runs at $3.00T per year as of Q1 2026 (seasonally adjusted annual rate). Value added counts only what factories themselves create; total factory revenue (gross output) is roughly $7.25T because it double-counts inputs bought from other industries.
  • Is U.S. manufacturing growing or shrinking? In dollar terms manufacturing value added is up 6.6% year over year; adjusted for inflation it is up 4.8%. Manufacturing typically grows in real terms even as its share of GDP declines, because the rest of the economy grows faster.
  • Why do some sources say manufacturing is 10% of GDP and others say much more? The difference is value added versus gross output. Value added ($2.90T in 2025) counts only manufacturing's own contribution and is the correct GDP comparison. Gross output ($7.25T) counts total factory revenue including purchased inputs, so quoting it against GDP overstates the share.
  • Which is bigger, durable or nondurable goods manufacturing? Durable goods manufacturing is larger: durable goods (metals, machinery, electronics, vehicles) produced $1.56T of value added in 2025 versus $1.34T for nondurable goods (food, chemicals, plastics, fuel).
  • What is the largest U.S. manufacturing industry? Chemical Products is the largest manufacturing subsector at $578B of value added in 2025, which is 19.9% of all U.S. manufacturing output, per BEA GDP-by-industry data.
  • Which state has the largest manufacturing economy? California leads with $385B of manufacturing GDP in 2025 (9.1% of the state's economy), ranked #1 of 51 states and DC in BEA state GDP data.

About this data

  • Source: U.S. Bureau of Economic Analysis (public domain). National quarterly values are seasonally adjusted annual rates. Corporate-profit industry detail reflects inventory valuation adjustment without capital consumption adjustment, per NIPA table 6.16D conventions.

Last reviewed 2026-05-12.