To estimate the impact of the change in PCE on the change in GDP, we have to compare July's real PCE to the real PCE of the 3 months of the second quarter. When we compare July's inflation adjusted PCE of 12,778.2 billion to the 2nd quarter’s real PCE of 11,819.6 billion, we find that July’s real PCE has grown at a 36.605% annual rate from the 2nd quarter.
The November report on Personal Income and Outlays from theBureau of Economic Analysis includes the month's data for our personal consumption expenditures (PCE), which accounts for more than 69% of the month's GDP, and with it the PCE price index, the inflation gauge the Fed targets, and which is used to adjust that personal spending data for inflation to give us the relative change in the output of goods and services that our spending indicated.
The June personal income and outlays report shows a 0.4% increase in consumer spending. When adjusted for inflation, consumer spending rose 0.3%. Personal income increased 0.2% while real disposable income increased 0.1% for the month. This is decent growth in PCE. From a year ago, real consumer spending has increased 2.8% while real disposable income has increased 2.2%.
Personal consumption expenditure (PCE) is usually the key metric for determining the ultimate trajectory of GDP each quarter. This key monthly release is detailed in the report on Personal Income and Outlays from theBureau of Economic Analysis.
0ther than the employment report and the GDP report itself, the monthly report on Personal Income and Outlays from theBureau of Economic Analysis is probably the most important economic release we see monthly, as it gives us the monthly data on our personal consumption expenditures (PCE), which accounts for more than 2/3rds of GDP, and the PCE price index,
The July personal income and outlays report shows a 0.3% increase in consumer spending. When adjusted for inflation, consumer spending rose 0.2%. Personal income increased 0.4% while real disposable income also increased 0.4% for the month. This is moderate growth. Wages also seem to be finally picking up.
Other than the employment report and the GDP report itself, the monthly report on Personal Income and Outlays from theBureau of Economic Analysis is the most important economic release we see monthly, as it gives us the monthly data on our personal consumption expenditures (PCE), which accounts for more than 2/3rds of GDP, our personal income and disposable personal income data, our savings and savings rate,
The May personal income and outlays report shows a massive increase of 0.9% in consumer spending, which is great news for economic growth. Adjusted for inflation consumer spending rose 0.6%. Personal income also increased 0.5% Real disposable income increased 0.2% for the month.
The February personal income and outlays report shows a -0.1% change in real consumer spending, which is not good news for economic growth. Not adjusted for inflation consumer spending rose a scant 0.1%. Real personal income isn't any better with no change for the month.
The November personal income and outlays report shows a 0.5% change in consumer spending, even when adjusted for inflation. This is the highest monthly percentage change in consumer spending adjusted for inflation since February 2012 and is good news for Q4 GDP. October consumer spending was revised up to 0.4% for the month.
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