What is the difference between service industry and industry in economy?

Industry is a generic term, but is most commonly used as a substitute term for a manufacturer of goods such as Pepsi or Ford. The term industry can also be used to refer to a very specific group of companies.

The service industry is essentially non-good producing industries such as retail trade, wholesale trade, and the service industries. According to the U.S. Census Bureau, these companies make up 70% of the total economic activity in the United States. Good examples of the service industry include health care, hospitality & accommodations, and real estate. The financial and insurance sectors would also be included within the service industry.

In economic terms, the differences are essentially the same. This is obviously a little simplistic, but check out Google Finance or any financial site under the Sector Summary to see how each of the "industries" are broken down for the purpose of comparison and reporting.