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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%. | 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>. | 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>. | ||
'''Highlights''' | |||
* Personal income increased, primarily reflecting an increase in compensation | |||
* The personal saving rate was 4.6 percent in February, compared with 4.4 percent in January. | |||
* Within services, the largest contributors to the increase were housing and utilities (led by housing) and health care (led by outpatient services) | |||
* Within goods, the largest contributors to the increase were gasoline and other energy goods. These increases were partly offset by a decrease in motor vehicles and parts | |||
* Real disposable personal income increased 0.2 percent in February. Real consumer spending decreased 0.1 percent reflecting 0.1 percent declines in both spending on goods and spending on services | |||
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> | |||
'''Highlights''' <ref>https://www.bea.gov/sites/default/files/2023-02/pi0123_fax.pdf</ref> | '''Highlights''' <ref>https://www.bea.gov/sites/default/files/2023-02/pi0123_fax.pdf</ref> | ||