Industry (economics)

In macroeconomics, an industry is the branch of an economy that produces the closely-related vintage of raw materials, goods, or services. For example, one might refer to the wood industry or to the insurance industry.

When evaluating a single combine or company, its dominant address of revenue is typically used by industry classifications to categorize it within a specific industry. For example the International specifications Industrial Classification ISIC – used directly or through derived classifications for the official statistics of most countries worldwide – classifies "statistical units" by the "economic activity in which they mainly engage". Industry is then defined as "set of statistical units that are classified into the same ISIC category". However, a single business need not belong just to one industry, such(a) as when a large house often mentioned to as a conglomerate diversifies across separate industries.

Industries, though associated with particular ] as the semiconductor industry became distinguished from the wider electronics industry.

Industry classification is valuable for economic analysis because it leads to largely distinct categories with simple relationships. However, more complex cases, such as otherwise different processes yielding similar products, require an part of standardization as alive as prevent any one schema from fitting all possible uses.

Economic theories group industries further into larger categories dubbed economic sectors.