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Consumer Sector Snapshot

Personal consumption expenditure (PCEs) is a measure of household expenditures. The

PCE price index, PCEs and personal income are released every month in the BEA (Bureau of

Economic Analysis). We have data on the spending decision of consumers in every state as well

as the economic well-being of the household (Jennifer et al.). This provides a snapshot of

consumer’s confidence in the economy. Growth in the total PCE by states, FRED statistics show

that PCE rose in the states from 1960 to 2020. There was a high growth rate from $10,056 billion

to $15,673 billion. On the basis of per capita, the estimated prototype estimates showed a high of

$15,873 in July 2020. The statistics shows that services and goods purchased. The PCE released

every month in the personal income, it reflects the change in price services and goods that

consumers in the United States purchased.

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The growth in total personal consumption expenditures: Durable Goods (PCEDG). The

statistics show that the total PCEDG increased in all states at higher rate than in 1950s. The

growth in 2010 was $1,006.1 billion and increased in 2020 to $1550 billion. However, the

PCEDG decreased to $1,195 billion in April 2020 before increasing to $2,150.1 billion. On

personal Consumption expenditure for Nondurable goods (PCENG), there was a gradual increase

for the past six decades. There was a slight recession in 2008 and 2009. The PCENG for the first

quarter of 2010 was approximately $2245 billion, and increased to $3,436.663 billion in the

second quarter of 2020. There was a slowest growth in Q3 of 2020 and Q4 of 2020.

From the personal consumption expenditures of services (PCESV), there was a gradual

increase since 1950. However, there was a high recession between Q1 of 2008 and Q2 of 2009.

The PCESV growth rate was $6,835.669 billion in Q1 2020. There was a gradual increase to

$10,133.165 billion in Q4 of 2019. However, the PCESV recorded a negative growth in Q2 of

2020 to $8,639.817.
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UMCSENT provides a statistics that forecasts the financial S&P 500. There was a

gradual growth rate for the sp index (index 1966:Q1=100 from 2010 to 2020. In 2020,

UMCSENT recorded a high index of 101 which later decreased to 71.8 by April 2020. The

revised sentiments of consumers reached 70.3 which is under the expectations of analyst. The

fears of inflation as well as resurgence of COVID-19 has chipped the confidence of consumers.

CPIAUCSL was used to recognize the periods of deflation and inflation. A significant

increase in CPIAUCSL within a short period indicates inflation. The graph shows that there was

a high increase in inflation rate from 2010 (Fred Economic Data). The CPIs are based in

transportation, fuels, shelter, clothing, and food prices. The CPIAUCSL was used to recognize

inflation and deflation.

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Work Cited

Fred Economic Data (2021). https://fred.stlouisfed.org/series/PCE

Hanford, Jennifer, et al. "Rates of Comorbidities in Very Low Birth Weight Infants Fed an

Exclusive Human Milk Diet versus a Bovine Supplemented Diet." Breastfeeding

Medicine (2021).