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The value of production including intermediate goods and services sold between producers.
An industry’s gross output can be divided into intermediate purchases and value added. Summing gross output across industries counts some inputs more than once as they move through production stages. That is expected for this measure; it becomes a mistake only if the sum is presented as though it were GDP.
Suppose a timber producer sells J$200,000 of wood to a furniture maker, which sells J$500,000 of furniture to final customers. Together their gross output is J$700,000. If the timber producer has no intermediate purchases in this simplified example, combined value added is J$200,000 plus J$300,000: J$500,000. The two totals describe different aspects of the same supply chain.