how pce is measured
the bea reports the total value of personal consumption expenditures collectively every month like most economic breakdowns pce is split between consumer goods and services durable goods and nondurable goods are components of the consumer goods figure durable goods are items that last longer than three years examples include cars electronics appliances and furniture nondurable goods have a life expectancy of under three years these include products like cosmetics gasoline and clothing services are tasks performed for the benefit of the recipient examples of services are legal advice house cleaning and plumbing specifically the categories represented in pce data include the following bea measures consumer spending for the nation and is broken down by state and the district of columbia while it issues the aforementioned monthly report additional details are provided annually 2according to the bea most pce valued by market prices including sales tax comes from household purchases of new goods and services from private businesses it also includes household purchases of new goods and services from the government pce also consists of spending by nonprofit institutions to provide services to households household purchases of used goods and the purchases of goods and services by u s residents in foreign countries pce also includes spending on behalf of households by third parties such as employer paid health insurance and medical care financed through government programs life insurance expenses and pension plan expenses 10advantages and disadvantages of pcepersonal consumption expenditures data provide a view of how the economy is faring this information is important for economic policy purposes and business decision making 