The 10 biggest industries in the US are the backbone of the largest economy in the world. There can be absolutely no doubt or uncertainty regarding the power of the U.S. economy and its global impact. With a GDP of over $23 trillion, the United States is the dominant player in global economic activity, with second-place China quite far behind with a GDP of over $18 trillion.
2022 has been a tough year for the global economy so far, and especially in the United States, where stocks posted their worst first-half in more than half a century. Inflation increased to 9.1% in June, a 40-year high, before slowing to 8.5% in July. The good news among all the gloom is that the U.S. dollar has appreciated significantly over the last year, at one point reaching parity with the Euro, which has increased the spending power of those earning in USD. However, this has had a negative impact on other countries, especially those with weaker currencies and significant foreign debt, as their debt has increased due to their currency depreciating against the dollar, while their purchasing power has likewise become weaker too.
There are credible fears that the world, including the United States, is heading into a recession, as economic output has slowed down considerably. In the United States, manufacturing activity has cooled down in recent months, and July was no exception, mainly because of high inventories and reductions in orders. According to the Institute for Supply Management, factory activity was at its lowest since June 2020, when the pandemic had spread rapidly and caused chaos across the business world.
The biggest industries in the United States will play an important role in the recovery of its economy. So which industries exactly make up the top 10? To determine this, we consulted IbisWorld, which determined the biggest industries in the United States based on expert analysis and a database of 1,300+ industries. The list has been ranked according to the revenue generated by each industry in the latest financial year.
Let’s now take a look at the industries that are likely to be major players in supporting economic recovery in the U.S. and abroad, starting with number 10.
Biggest Industries In the US
10. Property, casualty and direct insurance
Total revenue in the latest financial year (in billions): $751.9
This industry includes insurance providers for some of the most important assets in the world, namely you and the property you own. In the last five years, this industry has benefited from a hardening price cycle as well as a bull market in asset classes. Further, the demand for such insurance remains consistently high regardless of economic activity given that it’s often required by the law to insure assets like cars and houses.
docstockmedia/Shutterstock.com
9. Supermarkets & grocery stores
Total revenue in the latest financial year (in billions): $756.6
There are few things better than going to a grocery store on a lazy weekend and just rummaging around, picking up necessities as well as a couple of treats which you will regret later. The supermarket and grocery store model has evolved over time, with online shopping taking away some of the foot traffic in the stores, while adding the convenience of shopping from the comfort of your home, all of which has added to the revenue earned by the industry.
Pixabay/Public Domain
8. Public schools
Total revenue in the latest financial year (in billions): $791
While you wouldn’t expect public schools to be among the biggest industries in the United States, their revenue is driven by federal spending. While the pandemic affected that revenue, as schools were closed throughout much of 2020 and 2021, greater spending is expected in the future, especially on health and physical education.
Monkey Business Images/Shutterstock.com
7. Commercial banking
Total revenue in the latest financial year (in billions): $838.4
Commercial banking in the United States is an absolutely giant industry, with some of the country’s banks being among the biggest in the world. Over the past five years, improving economic conditions and rising interest rates have resulted in an increase in revenue and earnings, though times are a bit tough in other areas of the industry given the current economic situation.
Photo by Mikel Parera on Unsplash
6. Life insurance and annuities
Total revenue in the latest financial year (in billions): $946.9
Another insurance industry makes the list of the biggest industries in the U.S. However, the past five years have been a bit turbulent for life insurers, with macroeconomic conditions resulting in fluctuating demand from customers, not to mention the negative impact caused by the pandemic.
ssguy/Shutterstock.com