Consumer Spending Indicators

Consumer Spending, also known as Personal Consumption Expenditures (PCE), defines the value of the goods and services bought for or by the residents of a country. The statistics derived from this help provide a picture of the financial health of the economy at large, so businesses that monitor them can better predict consumer behavior. A large component of a country’s Gross Domestic Product, CPE is a leading economic indicator that depicts that if the spending is flat, economic growth may also be anemic, which can increase recession fears. The three of the most important economic indicators include disposable personal income is the amount of money that households have available for spending and saving, wage growth is an indicator of the health of consumer spending, and The number of unemployed workers in the labor force for every job opening.