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 ?
The change in personal consumption expenditures between the two months was merely $1.
The difference between disposable personal income and personal consumption expenditures [TABULAR DATA FOR TABLE 2 OMITTED] (personal saving, net interest payments, and transfers abroad) rose sharply once the tax cut took effect, corresponding to the increase in personal saving.
Low shares, combined with a high level of personal consumption expenditures (which necessitates a high personal income), translate into substantial purchasing power and generate additional market demand and economic activity.
What's Behind the Estates Personal consumption expenditures cover money spent on goods (nondurable and durable) and services.
For the personal consumption expenditure (PCE) price deflator, large upward revisions were made in 2004 and 2005.
Although real disposable personal income growth tends to vary more than real personal consumption expenditures, both series follow the same basic trends.
Crude oil prices are high and they may rise even more, but adjusted for inflation they are still much lower than their peak in 1981, and they amount to only three percent of personal consumption expenditures.
Sharply rising personal consumption expenditures contributed significantly to the drop in saving over the past few decades.
Industry research shows that personal checks are used in approximately half of all personal consumption expenditures, yet less than one percent were converted to electronic transactions.

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