Personal Consumption Expenditures

Definition

Personal Consumption Expenditures. An economic indicator representing a measure of the value of the goods and services purchased by, or on the behalf of, 'persons'

Personal consumption expenditures consist of purchases of goods and services by households and by nonprofit institutions serving households (NPISHs). These goods and services include imputed expenditures on items such as the services of housing by a homeowner (the equivalent of rent), financial and insurance services for which there is no explicit charge, and medical care provided to individuals and financed by government or by private insurance.

NIPA final-demand component for purchases by the household sector. In addition to showing what households spend, it also includes the current operating expenses of nonprofits that primarily serve households. For the 1997 and earlier benchmarks, PCE is split into durable goods, nondurable goods, and services.

See Also

• https://www.bea.gov/national/pdf/chapter5.pdf