#PERSONAL CONSUMPTION EXPENDITURES SERIES#

Because the oil sold by the government enters private inventories, there is no direct net effect on GDP. The decrease in nondefense spending reflected the sale of crude oil from the Strategic Petroleum Reserve, which results in a corresponding decrease in consumption expenditures. The decrease in federal government spending reflected a decrease in nondefense spending that was partly offset by an increase in defense spending. The decrease in residential fixed investment was led by a decrease in “other” structures (specifically brokers’ commissions). The decrease in private inventory investment was led by a decrease in retail trade (mainly general merchandise stores as well as motor vehicle dealers). Imports, which are a subtraction in the calculation of GDP, increased. The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE). The energy index rose 41.6% over the last year, the highest since April 1980. Bureau of Labor Statistics announced that consumer inflation rose to a 41-year high of 9.1% in June, up from 8.6% in May – the highest inflation since November of 1981. The explanation for such an aggressive rate hike according to Federal Reserve Chair Powell, is “to take the measures necessary to return inflation to our 2 percent longer-run goal.” The Federal Open Market Committee raised the target range for the federal funds rate by 3/4 percentage point, bringing the target range to 2-1/4 to 2-1/2 percent, Federal Reserve Chairman Jerome Powell announced yesterday. We have the resilience to weather the transition. Our job market is strong, spending is up, and unemployment is down. recession risk stating that while two consecutive quarters of negative growth is generally considered a recession, conditions in the economy are unique.Īfter historic economic growth – regaining all private sector jobs lost during the pandemic – we knew the economy would slow down as the Fed acts on inflation. Treasury Secretary Janet Yellen in a recent appearance on NBC’s Meet the Press on Sunday downplayed U.S. In the first quarter, real GDP decreased 1.6 percent. U.S.WASHINGTON, D.C., JToday the Department of Commerce’s Bureau of Economic Analysis (BEA) announced real gross domestic product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of 2022.

Bureau of Economic Analysis, Prices & Inflation Bureau of Economic Analysis, Personal Consumption Expenditures Price Index Bureau of Economic Analysis, Guide to the National Income and Product Accounts of the United States (NIPA) The two indexes, which have their own purposes and uses, are constructed differently, resulting in different inflation rates.įor more information on the PCE price index, see: The PCE Price Index is similar to the Bureau of Labor Statistics' consumer price index for urban consumers. The PCE Price index is the Federal Reserve’s preferred measure of inflation. The PCE price index is used primarily for macroeconomic analysis and forecasting.

#PERSONAL CONSUMPTION EXPENDITURES SERIES#

They also offer the series as a Chain-Type index, as above. The PCE Price Index is produced by the Bureau of Economic Analysis (BEA), which revises previously published PCE data to reflect updated information or new methodology, providing consistency across decades of data that's valuable for researchers. For example, if the price of beef rises, shoppers may buy less beef and more chicken.

The change in the PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior. The Personal Consumption Expenditures Price Index is a measure of the prices that people living in the United States, or those buying on their behalf, pay for goods and services.

Personal consumption expenditures