Personal Consumption Expenditures


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Personal Consumption Expenditures

A measure of inflation in the United States that considers how much people spend on household goods and services, while also weighting for the relative demand for those particular goods and services. In addition to calculating raw changes in prices, PCE measures rises and declines in demand based on those price changes, which, in turn, may enhance or dampen the effects of inflation. The PCE is compiled by the U.S. Department of Commerce and has little effect on the market because its results are usually predictable. It is not as widely used as the Consumer Price Index, which does not consider changes in demand as they occur. See also: PCEPI.
References in periodicals archive ?
APC out of personal income did not change because neither personal consumption expenditures nor personal income changed, whereas APC out of disposable personal income decreased because disposable personal income increased when tax payments fell.
Consumers reacted by increasing personal consumption expenditures by $24.
A crude, comparable number is a ratio of the change in personal consumption expenditures to the change in tax payments.
What's Behind the Estates Personal consumption expenditures cover money spent on goods (nondurable and durable) and services.
For example, personal consumption expenditures for food in India, Sri Lanka, and the Sudan exceed 49 percent.
Table 2 Food Expenditures Have Declined Over the Past Two Decades Economy 1970 1980 1989 Percent of personal consumption expenditures spent on food at home United States 14.

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