Interindustry Analysis

Interindustry analysis examines how different sectors of the economy are interconnected by analyzing the flow of goods and services between them. It identifies the relationships and dependencies among industries, showing how demand in one sector affects others. For example, an increase in automobile manufacturing impacts industries like steel, plastics, and electronics. This analysis helps businesses and policymakers understand economic health and anticipate how changes in one industry can ripple through the economy, enabling better decision-making and strategic planning across sectors.