Personal Consumption Expenditure

Personal Consumption Expenditures (PCE) are imputed household expenditures defined for a period of time. Split between goods and services, PCE accounts for almost 70% of economic output. Personal consumption expenditures support the reporting of the PCE Price Index, which measures price changes in consumer goods and services exchanged in the U.S. economy. PCE not only measures underlying inflationary pressures, but it also reflects whether the consumer is doing his or her part to propel economic growth. Personal Consumption Expenditures is an economic indicator acting as the main workhorse that drives economic growth, making it a key component of GDP.