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Home » Forex Glossary » Personal Consumption Expenditure (PCE) United States

Personal Consumption Expenditure (PCE) United States

It is the measurement of total consumer spending each month. It calculates this by accumulating expenditures on consumer products, durable goods, and other services. This tool is a comprehensive measurement of GDP and is constantly watched when determining economic trends and inflationary pressures. When a Personal Consumption figure is healthy, consumers are buying goods and services which in turn promote economic growth. Conversely when the figure is low then an economic downturn will occur. However when high levels of consumption and production occur then inflationary issues may arise.