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.
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13 Personal consumption expenditures 39,528 39,704 39,768
Annual average growth of goods components of personal consumption expenditures, projected 2000-10 (Percent) Personal computers 22.1 Drugs and medicines 8.5 Software 7.4 Furniture 5.1 Clothing and shoes 4.3 New light vehicles 3.5 Other motor vehicles and parts 3.1 Ophthalmic products 3.1 Food and beverages 2.3 Gasoline and motor oil 2.2 Fuel oil and coal 1.1 Tobacco products 0.8 Other goods 5.1 Total, all goods 4.1 Note: Table made from bar graph.
What's Behind the Estates Personal consumption expenditures cover money spent on goods (nondurable and durable) and services.
(3.) Food excludes personal consumption expenditures for purchased
Personal consumption expenditures account for two-thirds of total GNP.

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