PCE Deflator, (Personal Consumption Expenditure ... - Morningbull

Because income is either spent or saved, Personal Spending (when reported as a percent of
income rather than the headline percent change) has an inverse relationship to personal saving.
Economists watch the growth of Personal Spending in relation to income and saving to determine
if consumers are living beyond their means, which would influence levels of borrowing and future
consumption.
The PCE figure is released in headlines as a percent change from the previous month.
Core Personal Consumption Expenditure
Volatile items like food and energy can fluctuate widely due to seasonal and non-systemic factors.
In order to provide a less erratic picture of Personal Consumption, food and energy items are
excluded in the PCE core report.
The headline figure of PCE is expressed in percentage change in spending for the quarter.
Note: The Personal Consumption Expenditure figure is reported with the Personal Income and
Outlays figure.
Relevance: Moderate market impact
Release schedule : 12:30 (GMT); monthly, four to five weeks after the reporting month
Revisions schedule : Moderate revisions in the months following the report as more complete
data is available, plus annual revision in July or August.
Source of report : Bureau of Economic Analysis, Department of Commerce (U.S.)
Web Address : http://www.bea.gov/
Address of release : http://www.bea.gov/bea/newsrel/pinewsrelease.htm
AKA : PCE, Personal Spending, Personal Consumption
GDP Price Index - United States
Measures changes in the prices of goods and services that are included in US GDP. The GDP
Price Index is an indicator for inflation calculated by comparing the current GDP to GDP in the
reference year. A high or rising GDP Price Index, like other indicators of inflation, puts pressure
on the Federal Reserve to raise interest rates.
The GDP price index differs from other more popular inflation measures like CPI, in that it
includes all products accounted for by GDP and does not include the affects of changes in import
prices. Furthermore, the report is only released quarterly and commands little market attention
because of it lack of timeliness.