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Personal Consumption Expenditure: Difference between revisions
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== Personal Consumption Expenditure(PCE) Developments == | == Personal Consumption Expenditure(PCE) Developments == | ||
March 31, 2023: U.S PCE declined to 5% on a yearly basis in February from 5.3% in January. It was expected to decline by 5.3%. Meanwhile, Core PCE dropped to 4.6% on a yearly basis from 4.7% in January. It was expected to remain flat. On a monthly basis, both headline PCE and core PCE grew 0.3%. Core PCE was expected to rise by 0.4%. | |||
Personal income rose 0.3% versus 0.2% estimate while Consumer spending rose 0.2% versus 0.3% estimate<ref>https://www.cnbc.com/2023/03/31/fed-inflation-gauge-february-2023-.html#:~:text=Key%20Fed%20inflation%20gauge%20rose%200.3%25%20in%20February%2C%20less%20than%20expected,-Published%20Fri%2C%20Mar&text=The%20personal%20consumption%20expenditures%20price,This%20is%20breaking%20news.</ref>. | |||
On February 24 2022, US Commerce department announced that the core personal consumption expenditure rose 0.6% in January and 4.7% year-over-year. This was above the wall street expectations for a 0.5% rise in the month and 4.4% year-over-year increase. Headline Personal Consumption Expenditure rose 0.6% and 5.4%, respectively. Similarly, consumer spending rose 1.8% in January versus 1.4% estimate while Personal income rose 1.4%, higher than the 1.2% estimate. These numbers indicate that inflation remained sticky at the start of the new year. The rise mostly came from energy prices which rose 2% in January. Food prices increased 0.4% while goods and services both rose 0.6%.<ref>https://www.cnbc.com/2023/02/24/key-fed-inflation-measure-rose-0point6percent-in-january-more-than-expected.html</ref> It is believed that the "Spending was likely driven by a 8.7% cost of living adjustment, the biggest increase since 1981, for more than 65 million Social Security beneficiaries, which boosted income."<ref>https://www.reuters.com/markets/us/us-inflation-accelerates-january-consumer-spending-surges-2023-02-24/</ref> | On February 24 2022, US Commerce department announced that the core personal consumption expenditure rose 0.6% in January and 4.7% year-over-year. This was above the wall street expectations for a 0.5% rise in the month and 4.4% year-over-year increase. Headline Personal Consumption Expenditure rose 0.6% and 5.4%, respectively. Similarly, consumer spending rose 1.8% in January versus 1.4% estimate while Personal income rose 1.4%, higher than the 1.2% estimate. These numbers indicate that inflation remained sticky at the start of the new year. The rise mostly came from energy prices which rose 2% in January. Food prices increased 0.4% while goods and services both rose 0.6%.<ref>https://www.cnbc.com/2023/02/24/key-fed-inflation-measure-rose-0point6percent-in-january-more-than-expected.html</ref> It is believed that the "Spending was likely driven by a 8.7% cost of living adjustment, the biggest increase since 1981, for more than 65 million Social Security beneficiaries, which boosted income."<ref>https://www.reuters.com/markets/us/us-inflation-accelerates-january-consumer-spending-surges-2023-02-24/</ref> | ||