In economics, gross output (GO) is a measure of the value of production of new goods and services during an accounting period. Gross output represents the total value of sales by producing enterprises (their gross revenue or turnover) in an accounting period (a quarter or a year), before subtracting the value of intermediate goods used up in production from the value of sales. Gross output can also be defined as the value of net output (the gross value-added or GDP) plus the value of intermediate consumption.[1]
Gross output is therefore a broader measure of the value of production than gross domestic product (GDP), which measures only the net value of final output (finished goods and services). As of third-quarter 2024[update], for example, the Bureau of Economic Analysis estimated gross output in the United States to be $50.9 trillion, compared to $29.3 trillion for GDP.[2][3]
Gross output and net output are complementary measures of the value of production. The components of gross output provide extra insight about the inputs and factor costs of production as well as the transactions between economic sectors. They indicate the total expenditures and total sales that enterprises or sectors have. Net output measures indicate the net new wealth created by sectors or by all sectors put together. "Gross output [GO] is the natural measure of the production sector, while net output [GDP] is appropriate as a measure of welfare. Both are required in a complete system of accounts."[4]
Starting in April 2014, the Bureau of Economic Analysis began publishing gross output and gross output-by-industry on a quarterly basis, along with GDP.[5]
- ^ "What is gross output by industry and how does it differ from gross domestic product by industry?".
- ^ "Gross Output by Industry". Bureau of Economic Analysis. 19 December 2024. Retrieved 11 February 2025.
- ^ "Value Added by Industry". Bureau of Economic Analysis. 19 December 2024. Retrieved 11 February 2025.
- ^ Jorgenson, Dale W.; Landefeld, J. Steven; Nordhaus, William D. ed. (2006). A New Architecture for the U. S. National Accounts. Chicago University Press. p. 6.
{{cite book}}:|first3=has generic name (help) - ^ Analysis, US Department of Commerce, BEA, Bureau of Economic. "Bureau of Economic Analysis". www.bea.gov. Archived from the original on 2018-07-27. Retrieved 2015-11-03.
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